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Base Rate for Dummies

noun

pronunciation: beɪs_reɪt

What does Base Rate really mean?

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Hey there! So, "base rate" is like the starting point for something. It's the basic rate or the standard that's used as a reference for calculating other things. It's kind of like the foundation of a building – it's the starting point on which everything else is built.

For example, let's say you're trying to figure out the cost of something, like a phone plan. The base rate might be the monthly fee that you have to pay before adding any extra charges. Or in the case of a bank, the base rate is the interest rate that’s set by the central bank, and that other banks use as a benchmark for setting their own interest rates.

So, "base rate" is like the original starting point from which other things are determined. It's like the first ingredient in a recipe – everything else is added on to it. Does that make sense to you?

Revised and Fact checked by John Smith on 2023-11-15 23:07:48

Base Rate In a sentece

Learn how to use Base Rate inside a sentece

  • The base rate for a savings account is 2%, which means if you deposit $100, you will earn $2 in interest each year.
  • The base rate for a taxi ride is $3, and then it increases by $1 per mile you travel.
  • The base rate for a music streaming service is $10 per month, and then you can add on extra features for an additional cost.
  • The base rate for a hotel room is $100 per night, but it may increase on weekends or during holidays.
  • The base rate for a pizza is $10, and then you can add extra toppings for an additional fee.