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discount rate

   Also found in: Dictionary/thesaurus, Financial, Acronyms, Encyclopedia, Wikipedia 0.02 sec.

discount rate

The rate that banks are charged to borrow money from the Federal Reserve Bank. One of the tools of monetary policy, the discount rate allows the Federal Reserve System to govern consumer interest rates and the amount of money in circulation.



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? Mentioned in ? References in periodicals archive
 
They had set a maximum tuition discount rate (that is, the proportion of total tuition directed to financial aid) to keep the college within a "healthy" range.
The Treasury Department auctioned $18 billion in three-month bills at a discount rate of 4.
A physician new to the leadership team asks how the discount rate for the proposals was determined.
 
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