What is a base rate? A base rate is the interest rate that a central bank – such as the Bank of England or Federal Reserve – will charge commercial banks for loans. The base rate is also known as the ...

An exchange rate is the relative value of one country’s currency versus another’s. According to the most recent BIS Triennial Central Bank Survey on foreign exchange and over-the-counter (OTC) ...

An accrual rate is the interest percentage added to the principal of a financial product between payments. Learn how it applies to bonds, mortgages, and vacation time.

Interest rates are a measure of the cost of a loan to a borrower. Typically expressed as a percentage, an interest rate is applied to the outstanding balance of a loan at regular intervals. Interest ...

A tax rate is a measurement used to calculate the amount of tax an individual or organization pays. The tax rate can be a percentage or fixed amount, and tax rates can vary depending on income level, ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

The Effective Annual Interest Rate (EAR) is a critical metric that investors and borrowers use to compare the annual interest rates of different financial products. Unlike nominal rates, the EAR ...