Question

When banks provide information about savings accounts, they typically quote the interest rates they offer (e.g. 1%) on a...
A. Per day basis
B. Per month basis
C. Per six months basis
D. Annual basis

Answer 1

Answer:

D. Annual basis

Explanation:

Banks and other financial institutions typically quote interest rates that they pay for deposits on an annual basis. This is to say, the quote the effective rate that is compounded annually, even if the interest is paid monthly, daily, quaterly, or semi-annually.