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.
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.
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discount rate is ...
... part of the Economy subject.
... part of the Economy subject.
Related Terms
cap rate, FOMC, Fed funds rate, discount window, forfeiting, Lombard rate, payment shock, federal key rates, Term Auction Facility
discount rate appears in the definitions of these other terms on BusinessDictionary.com
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