A basis point is one hundredth of one percent.

Name: A basis point is one hundredth of one percent.
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This is correct. Basis points are often used in finance to denote small percentage changes or differences in interest rates, bond yields, or other financial metrics. One basis point is equal to 0.01%, or one hundredth of one percent. For example, if an interest rate increases from 4.50% to 4.51%, that is a one basis point increase.

A Basis Point Is One Hundredth of One Percent