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Discount rate
1. The rate, per year, at which future values are diminished to make them comparable to values in the present. Can be either subjective (reflecting personal time preference) or objective (a market interest rate). 2. The interest rate that the Fed charges commercial banks for very short-term loans of reserves. One of the tools of monetary policy.
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- Part of Speech: noun
- Synonym(s):
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- Industry/Domain: Economy
- Category: International economics
- Company: University of Michigan
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