To solve this, let's first convert the numbers into their decimal forms:

• 54 and five hundredths is written as 54.05.
• 50 and 40 thousandths is written as 50.040.

Now, subtract the second number from the first to find how much greater 54.05 is than 50.040:

$54.05 - 50.040 = 4.01$

In words, the answer is four and one-hundredth.

Would you like more details on this? Here are five related questions you might find interesting:

1. How do you convert decimals to fractions?
2. What is the process for subtracting decimals?
3. How do you round decimals to the nearest hundredth?
4. What is the difference between thousandths and hundredths in decimals?
5. Can you add and subtract mixed numbers with decimals?

Tip: When dealing with decimals, make sure to line up the decimal points to ensure accuracy in addition and subtraction.