discount rate
Definition 1
The rate at which member banks may borrow short term funds directly from a Federal Reserve Bank. The discount rate is one of the two interest rates set by the Fed, the other being the Federal funds rate. The Fed actually controls this rate directly, but this fact does not really help in policy implementation, since banks can also find such funds elsewhere. also called Federal Reserve Discount Rate.
Definition 2
The interest rate used in discounting future cash flows; here also called capitalization rate.
 Cite this definition
Related Terms
above par, Bank Rate, Federal Open Market Committee, cap rate
'discount rate
' appears in the definitions of these terms on BusinessDictionary.comdiscounted cash-flow (DCF), mail order/telephone order (MOTO) discount rate, swipe discount rate, credit note, discount schedule, and 
Related Research Articles from the InvestorGuide.com University
Introduction to the Economy
Learn how the economy can be influenced by the US government through fiscal and monetary policy. Understand the importance of a global economy and why individuals should make a portion of their investments overseas.
Economic Indicators
Find out about some of the most researched pieces of news in the world. Topics include Gross Domestic Product, Consumer Price Index, the Producer Price Index, Employment Indicators, the Retail Sales Index, the National Association of Purchasing Management Index, the Consumer Confidence Index, and more.
Inflation and Interest Rates
Discover how inflation works and the affect it can have on the market. Also, learn about interest rates, what causes them to rise or drop, and why you should care.
Featured Sponsor
|
