discount window Definition

discount window

Definition

A tool of monetary policy that provides short-term funding to banks in the case of a shortage in liquidity resulting from disruptions to the normal banking environment. Borrowing from the discount window means that a financial institution is borrowing directly from a central bank, such as the Federal Reserve. The rates applied to the financial institutions borrowing at the discount window include the primary credit rate, secondary credit rate and seasonal credit rate. See also discount rate.

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... part of the Banking and Lending & Credit subjects.

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Discounted Cash Flow Analysis

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