discount rate
The rate, per year, at which future values are diminished to make them comparable to values in the present. Can be either subjective (reflecting personal time preference) or objective (a market interest rate). The interest rate that the Fed charges commercial banks for very short-term loans of reserves. One of the tools of monetary policy.
Browse by Subjects
certificate of deposit
Federal Reserve Discount Rate
Federal Reserve Board (FRB)
Accepting Houses Committee
discount window
See All Related Terms »

bank manager
bankable paper
customs seal