discount rate


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Related to discount rate: Federal funds rate
  • noun

Synonyms for discount rate

the rate of interest set by the Federal Reserve that member banks are charged when they borrow money through the Federal Reserve System

interest on an annual basis deducted in advance on a loan

References in periodicals archive ?
This implies that only high-income households are adequately represented by the DOE's use of a 3 percent discount rate.
The new unified discount rate will remain unchanged until the completion of the next review of the LIC DSF by the Executive Boards of the World Bank and the IMF, scheduled for 2015.
Agar said the reduction of discount rate to 6 to 7 percent would enable the business community to have a level playing field with the competitors in the region.
The increase in the discount rate was made in line with requirements set by the International Monetary Fund (IMF) that approved USD 7.
Closest to our study, Eckel, Johnson, and Montmarqueue (2004) find that short-term discount rate elicitation can predict long-term savings behavior among a relatively low-income population.
He said that low discount rate has a positive impact on the economy as it facilitates the commercial banks to provide low cost credit facility to businessmen and help them accelerate the growth of trade and industrial activities.
The key presumption underlying the economic analysis of the discount rate is that the government should consider not just its financial cost of borrowing but also the economic impact of that investment relative to alternative rates of return earned by capital invested in the general economy.
Microsoft's real estate and facilities team had been determining the corporate discount rates to use to buy or lease buildings, says Joel Combs, group manager in Microsoft's treasury.
The institution's discount rate initially spiked to the mid-50s, but after financial stability was achieved, it has been systematically brought down to the low 40s, while simultaneously balancing other important enrollment goals.
The Federal Discount Rate as used in Amendment 60 is defined as the "Federal Reserve discount Rate on ninety-day commercial paper" then in effect.
In determining the discount rate to be used to test whether a periodic adjustment is required, the Institute noted that the proposed regulations demonstrate a preference for using the overall weighted average cost of capital (WACC) of the company if it is publicly traded.
The required rate of return, or discount rate, is determined to be 20%.
The Federal Reserve Board approved on September 20, 2005, an action by the Board of Directors of the Federal Reserve Bank of San Francisco, increasing the discount rate at the Bank from 4 1/2 percent to 4 3/4 percent.
The discount rate should be determined by giving consideration to the estimated yield, over the period of time the benefits are to be provided, on the investments that are expected to be used to finance the payment of benefits, (4) with consideration given to the nature and mix of current and expected investments.
before January 9, 2003), the Fed set the discount rate below the targeted market federal funds rate, but prohibited banks from using the discount window.