Discount rate

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Discount rate is an interest rate calculated and payable in advance. Unless otherwise specified or suggested, the term refers to the official rate charged by the central bank for discounting the short term paper and other eligible investments of other banks. In the United States, the official discount rate is the rate the Federal Reserve Banks charge their member banks. In Great Britain, the discount rate of the Bank of England is known as the bank rate.[1]


  1. Percy L. Greaves, Jr. "Mises Made Easier ", 1974. Referenced 2014-07-01.