American Heritage® Dictionary of the English Language, Fourth Edition
- n. The interest deducted in advance in purchasing, selling, or lending a commercial paper.
- n. The interest rate charged by a central bank on loans to its member banks. A change in the discount rate is usually followed by similar changes in the interest rates charged by banks and money markets.
- n. finance An interest rate that a central bank charges depository institutions that borrow reserves from it.
- n. 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.
- n. interest on an annual basis deducted in advance on a loan
- n. the rate of interest set by the Federal Reserve that member banks are charged when they borrow money through the Federal Reserve System
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