discount rate
- The annual rate of interest that is subtracted in advance from the face value of a loan
- The interest rate charged by the Federal Reserve on the loans it provides to commercial banks
- Lowering the discount rate will reduce the monthly fixed repayment on the loan.
- The bank had to revise its lending practices when the Federal Reserve proposed a hike in the discount rate.
- Due to economic instability, changes in the discount rate were implemented to maintain financial balance.
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