DISCOUNT RATE


Meaning of DISCOUNT RATE in English

The interest rate that the Federal Reserve charges a bank to borrow funds when a bank is temporarily short of funds. Collateral is necessary to borrow, and such borrowing is quite limited because the Fed views it as a privilege to be used to meet short-term liquidity needs, and not a device to increase earnings .

Campbell R. Harvey. Hypertextual finance English glossary.      Английский словарь гипертекстовых финансов.