A basis point equals
A)one hundredth of a percentage point.
B)one tenth of a percentage point.
C)one half of a percentage point.
D)ten percentage points.

Question

Quizplus · Accepted Answer

A basis point is typically used to represent a change in interest rates or a difference in yield. It is equal to one hundredth of a percentage point (0.01%). Therefore, option A is correct. Option B and C are incorrect as they are greater or lesser than one hundredth of a percentage point. Option D is far too high and completely incorrect.

A Basis Point Equals