Definition of discount rate

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TeachMeFinance.com - explain discount rate



discount rate -- The interest rate the Federal Reserve System charges on a loan that it makes to a bank. Such loans, when allowed, enable a bank to meet its reserve requirements without reducing its loans.

another definition...

Discount rate -- The interest rate paid by commercial banks to borrow funds from Federal Reserve Banks.

another definition...

discount rate -- the interest rate charged by the Federal Reserve Banks on loans to their member banks.



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Mark McCracken

Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English".


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