discount rate

  1. discount ()
  2. the rate at which the Federal Reserve Banks discount or rediscount securities offered by member banks

See discount rate in American Heritage Dictionary 4

noun
  1. The interest deducted in advance in purchasing, selling, or lending a commercial paper.
  2. 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.

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