Legal Dictionary of Pakistan
Quick lookup for English, Urdu, and Latin legal terms used in Pakistani jurisprudence.
discount rate
1. The interest rate at which a member bank may borrow money from the Federal Reserve. ( This rate controls the supply of money available to banks for lending. Cf. rediscount rate. 2. The percentage of a commercial paper's face value paid by an issuer who sells the instrument to a financial institution. 3. The interest rate used in calculating present value.
rediscount rate
The interest rate at which a member bank may borrow from the Federal Reserve on a loan secured by commercial paper that has already been resold by the bank. stated rate See nominal rate.