discount rate


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Related to discount rate: Federal funds rate
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  • 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 ?
The discount rate (and capitalization rate) used in corporate acquisition analysis is normally expressed as a weighted average cost of capital (WACC).
Regardless of the discount rate chosen, we find evidence that the MNDR is a stationary process.
It is the first time a BOJ Policy Board member has publicly mentioned the official discount rate -- the rate the central bank charges to commercial banks.
But according to a brokerage analyst, the central bank was concerned that a further decline in the official discount rate would inevitably accelerate the yen's depreciation against the dollar, and that would cause more fund concentration in the United States, further boosting U.
A lower discount rate implies that present consumption is valued relatively low compared to future consumption, whereas a higher discount rate implies future consumption has less value relative to present consumption.
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.
Treasury partnered with the real estate team to create a base discount rate for real estate transactions.
As Grossman (2000) notes, the Becker-Murphy model predicts a discount rate effect only under certain circumstances (the result is generally ambiguous in sign, and uncertain in magnitude).
Summary: Kuwait's central bank has decided to cut its discount rate by 25 basis points to.
The Treasury Department auctioned $17 billion in three-month bills at a discount rate of 4.