BNET Business Dictionary
Business Definition for: Discount Rate
- the rate charged by a central bank on any loans it makes to other banks
- a percentage fee that an e-commerce merchant pays to an account provider or independent sales organization for settling an electronic transaction
Additional Resources
- The response of market interest rates to discount rate changes.
- IT IS WELL-ESTABLISHED that discount rate changes of the same size can have markedly different effects on market interest rates. Studies of such effects, starting with Thornton (1982), have generally divided discount rate changes into two groups: &qu IT IS WELL-ESTABLISHED that discount rate changes of...
- Research articles 1992-07-01
- What Discount Rate Should Be Used to Valued Defined Benefit Pension Liabilities?
- In defined benefit pension plans, the primary function of the actuarial valuation is to determine appropriate contribution rates from the plan sponsor. For this reason, the valuation discount rate is based on the expected return on the assets of the pension fund and the definition of the actuarial liability can...
- White papers 2004-01-01
- Say Fed's rate cut to spur apparel. (Federal Reserve Board's reduction in the discount rate should bring higher consumer spending levels)
- WASHINGTON FNS -- Carl Priestland, chief economist for the American Apparel Manufacturers Association, said the Federal Reserve Board's reduction Wednesday in the discount rate should help lift spending on apparel in the months ahead. The Fed, acting in the face of a continuing...
- Research articles 1991-11-07
- Final rule-amendment to Regulation A - Legal Developments - Extensions of Credit by Federal Reserve Banks; Change in Discount Rate - Brief Article
- The Board of Governors is amending 12 C.F.R. Part 201, its Regulation A (Extensions of Credit by Federal Reserve Banks; Change in Discount Rate), to reflect its approval of a decrease in the basic discount rate at each Federal Reserve Bank. The Board acted on requests submitted by the Boards...
- Research articles 2002-01-01
- The federal reserve Bank raised its discount rate to 4.25% at its December meeting, the 13th consecutive increase.(THE NUMBERS)
- THE FEDERAL RESERVE Bank raised its discount rate to 4.25% at its December meeting, the 13th consecutive increase. Remarks from outgoing chairman Alan Greenspan suggest that the Fed believes rates are now too high to stimulate economic ... THE FEDERAL RESERVE Bank raised its...
- Research articles 2006-01-01
- Fed decides to dust off discount rate. (Federal Reserve Board)
- Fed decides to dust off discount rate Fed decides to dust off discount rate
- Research articles 1991-01-15
- Release of minutes to discount rate meetings
- The Federal Reserve Board on May 13, 2004, released the minutes of its discount rate meetings from February 9, 2004, through March 15, 2004. On July 8, 2004, the Federal Reserve Board released the minutes of its discount rate meetings from March 29, 2004, through May 3, 2004.
- Research articles 2004-06-22
- Approvals of increase in discount rate
- The Federal Reserve Board approved on November 10, 2004, an action by the Board of Directors of the Federal Reserve Bank of San Francisco increasing the discount rate at the Bank from 234 percent to 3 percent, effective immediately. The Federal Reserve Board approved on November 12, 2004, an...
- Research articles 2005-01-01
- Approvals of discount rate actions
- The Federal Reserve Board approved on March 23, 2005, an action by the Board of Directors of the Federal Reserve Bank of Kansas City increasing the discount rate at the Bank from 312 percent to 334 percent, effective immediately. The Federal Reserve Board approved on March 24, 2005, an...
- Research articles 2005-03-22
- Market efficiency, discount-rate changes, and stock returns: A long-term perspective
- Abstract This paper examines the market efficiency issue by analyzing stock returns surrounding Fed announcements of discount-rate changes. Based on an analysis of ex post returns over a 58-year period, the results provide evidence of long-term market efficiency. Consistent with recent literature, the findings also reveal some...
- Research articles 1999-04-01
- Action By The Federal Open Market Committee And A Decrease In The Discount Rate - Brief Article
- The Federal Open Market Committee decided on April 18, 2001, to lower its target for the federal funds rate by 50 basis points to 41/2 percent. In a related action, the Board of Governors approved a 50 basis point reduction in the discount rate to 4 percent.
- Research articles 2001-06-01
- Action By The Federal Open Market Committee And An Increase In The Discount Rate
- The Federal Open Market Committee voted on February 2, 2000, to raise its target for the federal funds rate by 25 basis points to 5 3/4 percent. In a related action, the Board of Governors approved a 25-basis-point increase in the discount rate to 5 1/4 percent.
- Research articles 2000-03-01
- FOMC actions and discount rate changes - Announcements - Federal Open Market Committee - Brief Article
- The Federal Open Market Committee decided on October 2, 2001, to lower its target for the federal funds rate by 50 basis points to 2 1/2 percent. In a related action, the Board of Governors approved a 50 basis point reduction in the discount rate to 2 percent.
- Research articles 2001-11-01
- Federal open market committee directive and discount rate decrease - Announcements - Brief Article - Statistical Data Included
- The Federal Open Market Committee decided on November 6, 2001, to lower its target for the federal funds rate by 50 basis points to 2 percent. In a related action, the Board of Governors approved a 50 basis point reduction in the discount rate to 1 1/2 percent.
- Research articles 2001-12-01
- Action By The Federal Open Market Committee And An Increase In The Discount Rate
- The Federal Open Market Committee voted on May 16, 2000, to raise its target for the federal funds rate by 50 basis points to 6 1/2 percent. In a related action, the Board of Governors approved a 50 basis point increase in the discount rate to 6 percent.
- Research articles 2000-07-01
- FOMC directive and discount rate decrease - Announcements - Brief Article
- The Federal Open Market Committee decided on December 11,2001, to lower its target for the federal funds rate by 25 basis points to 1 3/4 percent. In a related action, the Board of Governors approved a 25 basis point reduction in the discount rate to 1 1/4 percent.
- Research articles 2002-01-01
- Federal Open Market Committee Actions And Changes In Discount Rate - Brief Article
- The Federal Open Market Committee at its meeting on March 20, 2001, decided to lower its target for the federal funds rate by 50 basis points to 5 percent. In a related action, the Board of Governors approved a 50 basis point reduction in the discount rate to 4 1/2...
- Research articles 2001-05-01
- Action By The Federal Open Market Committee And An Increase In The Discount Rate - Brief Article
- The Federal Open Market Committee voted on March 21, 2000, to raise its target for the federal funds rate by 25 basis points to 6 percent. In a related action, the Board of Governors approved a 25 basis point increase in the discount rate to 51/2 percent.
- Research articles 2000-05-01
- Banks Could Use Discount Rate To Recapitalize
- Larry MacDonald submits: U.S. banks are finding it difficult to raise capital and avoid a drastic restriction in lending, fanning fears of systemic meltdown and a plunge into a severe economic downturn. But maybe things aren’t all that bad: the Federal Reserve’s 2% discount rate is another avenue...
- External links 2008-08-11
- Release of minutes of discount rate meetings
- The Federal Reserve Board, on December 18, 2003, released the minutes of its discount rate meetings from September 29, 2003, through October 27, 2003.
- Research articles 2004-12-22
