Meaning DISCOUNT RATE: The interest rate that the Federal Reserve charges a bank to borrow funds when a bank is temporarily short of funds. Collateral is necessary to borrow, and such borrowing is quite limited because the Fed views it as a privilege to be used to meet short-term liquidity needs, and not a device to increase earnings
More terms such as Discount rate in Dictionary D.
- Definition Dilution Protection:
- Examples that changes the conversion ratio in the case of a stock dividend or extraordinary distribution to avoid dilution of a convertible bondholder's potential equity position. Adjustment usually discount rate definition.
- Definition Direct Search Market:
- Examples Buyers and sellers seek each other directly and transact directly discount rate explain.
- Definition Debt-Service Coverage Ratio:
- Examples Earnings before interest and income taxes, divided by interest expense plus the quantity of principal repayments divided by one minus the tax rate discount rate what is.
- Definition Draining Reserves:
- Examples System's course of action to tighten the money supply by (1) raising a bank's minimum reserve requirements, (2) selling bonds in the open market, (3) raising the rate at which banks borrow discount rate meaning.
- Definition Delta Hedge:
- Examples A dynamic hedging strategy using options that calls for constant adjustment of the number of options used, as a function of the delta of the option discount rate abbreviation.
