discount rate

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discount rate

n.
1. The interest rate charged by a central bank on loans to its member banks. A change in the discount rate is usually followed by similar changes in the interest rates charged by banks and money markets.
2. The interest rate used in determining the present value of a future payment or series of payments.

discount rate

n
1. (Banking & Finance) the amount of interest deducted in the purchase or sale of or the loan of money on unmatured negotiable instruments
2. (Banking & Finance) the rate of interest deducted
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.discount rate - the rate of interest set by the Federal Reserve that member banks are charged when they borrow money through the Federal Reserve System
U.S.A., United States, United States of America, US, USA, America, the States, U.S. - North American republic containing 50 states - 48 conterminous states in North America plus Alaska in northwest North America and the Hawaiian Islands in the Pacific Ocean; achieved independence in 1776
interest rate, rate of interest - the percentage of a sum of money charged for its use
2.discount rate - interest on an annual basis deducted in advance on a loandiscount rate - interest on an annual basis deducted in advance on a loan
interest rate, rate of interest - the percentage of a sum of money charged for its use
bank rate - the discount rate fixed by a central bank