PROVISIONAL RATE Meaning and
Definition
-
Provisional rate refers to a temporary or interim rate that is subject to change or adjustment. This term is commonly used in various contexts, particularly in finance, insurance, and commerce.
In finance, a provisional rate may refer to an interest rate that is fixed temporarily until a permanent or final rate is determined. For example, a bank may provide a provisional rate of interest on a loan until the borrower's creditworthiness is thoroughly assessed, and a final interest rate is determined. Similarly, in insurance, a provisional rate may be assigned temporarily until more accurate data on risks is obtained, and a final premium rate is set.
In commerce, a provisional rate is often used in international trade. It refers to a temporary rate of duty or tariff that is imposed on goods until a final determination is made regarding the applicable duty. This allows goods to be imported or exported, even if the final duty rate is unknown or under negotiation.
Overall, a provisional rate is a temporary measure that is subject to change based on further assessment or determination. It serves as an initial or interim rate until a final rate is established, providing a level of flexibility and allowing transactions to occur despite the uncertainty of the final rate.
Common Misspellings for PROVISIONAL RATE
- orovisional rate
- lrovisional rate
- -rovisional rate
- 0rovisional rate
- peovisional rate
- pdovisional rate
- pfovisional rate
- ptovisional rate
- p5ovisional rate
- p4ovisional rate
- privisional rate
- prkvisional rate
- prlvisional rate
- prpvisional rate
- pr0visional rate
- pr9visional rate
- procisional rate
- probisional rate
- progisional rate
- profisional rate
Etymology of PROVISIONAL RATE
The word "provisional" originated from the Latin word "provisio", which means "a foreseeing or preparing for the future". It evolved in the late 16th century in English and came to describe something that is temporary or subject to change.
The term "rate" has a different etymology. It originated from the Latin word "ratus", which means "reckoned or calculated". It entered English in the late 15th century, describing a proportion or amount calculated relative to something else.
When these two words are combined, "provisional rate" refers to a temporary or interim rate that is subject to change or adjustment in the future. This term is often used in finance, economics, and various contractual agreements.
Infographic
Add the infographic to your website:
