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Discount rate

noun

Definitions

Noun
  1. 1
    An interest rate that a central bank charges depository institutions that borrow reserves from it. countable, uncountable
  2. 2
    interest on an annual basis deducted in advance on a loan wordnet
  3. 3
    The interest rate used to discount future cashflows of a financial instrument; the annual interest rate used to decrease the amounts of future cashflows to yield their present value. countable, uncountable
  4. 4
    the rate of interest set by the Federal Reserve that member banks are charged when they borrow money through the Federal Reserve System wordnet

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