discount rate

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

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