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discount rate
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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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The discount rates reflect that the bills sell for less than face value.
Often, institutional discount rates are established and applied to the analysis of all projects.
Discount rates are calculated by dividing total tuition and fee revenue by institutional financial aid.
 
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