NOUN
- the rate of interest set by the Federal Reserve that member banks are charged when they borrow money through the Federal Reserve System
- interest on an annual basis deducted in advance on a loan
How To Use discount rate In A Sentence
- Bundesbank officials have predicated another cut in the discount rate on the pace of money supply growth.
- The three dimensions to an economic analysis using present value are assessing the magnitudes of the relevant cost or benefit flows, determining the period over which these flows will occur, and selecting the appropriate discount rate.
- Since the district banks are owned not by the federal government but by the commercial banks, reductions in the discount rate do not affect the public treasury.
- And the monetary control means mainly includes legal reserve requirement rate control, rediscount rate control, and open market business control, etc.
- Smarter people were using auto club or age-group membership cards to get their rooms at discount rates.
- The fact that the cumulative discount rate rises to infinity and the discounted value of a unit of income falls to zero after a finite period of time for everyone explains why no one plans for the indefinite future and illustrates how everyone demonstrates categorial time preference. The Myth of Time Preference, Bryan Caplan | EconLog | Library of Economics and Liberty
- The argument was that the discount rate should be reduced to counteract the effect of the higher rate tax on the award.
- A series of recent interest rate cuts have brought down the rediscount rate and the accommodation rate from last year's highs of 4.75% and 5.125%, respectively.
- That's because the Fed has cut what it calls the discount rate. CNN Transcript Aug 17, 2007
- The formal agreement between the two parties is based purely upon an agreed discount rate.