Discount rate is the interest rate charged to commercial banks and other depository institutions for loans received from the Federal Reserve's discount window.
 | | Discount Rate | The discount rate is the interest rate charged to commercial banks and other depository institutions for loans received from the Federal Reserve's discount window.
The discount rate also refers to the interest rate used in discounted cash flow analysis to determine the present value of future cash flows. | | Breaking it Down: | | The Fed's discount rate is an administered rate set by the boards of the Federal Reserve Banks and approved by... | | Read More » | | Related to "Discount Rate" | | | | Bank Rate | | A bank rate is the interest rate at which a nation's central bank lends money to domestic banks, which in turn impacts economic activity. | | Read More » | | | Volume Discount | | Volume discounts are financial incentives for individuals or businesses that purchase goods in multiple units or in large quantities. | | Read More » | | | Key Rate | | The key rate is the specific interest rate that determines bank lending rates and the cost of credit for borrowers. | | Read More » | | | Discount | | In finance, discount refers to a situation when a bond is trading for lower than its par or face value. | | Read More » | | |  | | | | CONNECT WITH INVESTOPEDIA | | | | | | | |
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