Q1 · Practice questionSimple familiar1 mark
QUESTION 1
A hypothetical cash rate falls from 4.35% to 3.85%. The decrease is
(A)
0.5 basis points.
(B)
50 percentage points.
(C)
50 basis points.
(D)
11.5 percentage points.
WORKED SOLUTION
1 markAnswer C
Answer
C
Working
One percentage point equals 100 basis points. The decrease is 0.50 percentage points, or 50 basis points.
Marking criteria
- Select C. [1 mark]
Practice question aligned to the current QCAA syllabus; review the worked solution and marking criteria.
View the QCAA syllabus