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.
Discount rate -- The interest rate paid by commercial banks to borrow funds from Federal Reserve Banks.
discount rate -- the interest rate charged by the Federal Reserve Banks on loans to their member banks.
About the author
Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.