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Discount rate
Meaning
Noun
●
In Finance:
An
interest rate
that a
central bank
charges
depository
institutions
that
borrow
reserves
from it.
●
In Finance:
The
interest rate
used to
discount
future
cashflows
of a
financial instrument
; the
annual
interest rate
used to
decrease
the
amounts
of future
cashflows
to
yield
their present value.
Sourced from
Wiktionary
Synonyms
Bank Rate
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