TeachMeFinance.com - explain Differential
differential -- refers to what was once the traditional difference in interest rates on savings deposits paid by commercial banks and thrift institutions. At times, the slightly higher rate paid by thrift institutions (generally 25 basis points) was mandated by regulation. The required differential was phased out by January 1984.
Differential -- An amount added to or deducted from a base shipping freight rate between two given locations to determine a new rate to or from some other point or via another route.
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