Financial Definition of Discount Rate
Meaning of Discount Rate
The interest rate that the Federal Reserve charges a bank to borrow funds when a bank is temporarily short of funds. Collateral is necessary to borrow, and such borrowing is quite limited because the Fed views it as a privilege to be used to meet short-term liquidity needs, and not a device to increase earnings.
Related Entries of Discount Rate in the Encyclopedia of Law Project
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Discount Rate in Historical Law
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Finance > Financial institutions and credit > Credit policy
Meaning of Discount rate
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Translation of Discount rate
- Spanish: Tipo de descuento
- French: Taux d’escompte
- German: Diskontsatz
- Italian: Tasso di sconto
- Portuguese: Taxa de desconto
- Polish: Stopa dyskontowa
Thesaurus of Discount rate
Finance > Financial institutions and credit > Credit policy > Discount rate
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