discount rate
Federal Reserve charge
The discount rate has related meanings in finance and central banking.
In general finance, it's the interest rate used to calculate the present value of future cash flows—determining what money to be received later is worth today.
In central banking, particularly in the United States, the discount rate is the interest rate the Federal Reserve charges commercial banks for short-term loans, serving as a tool of monetary policy.
The Fed raised the discount rate to cool inflation.
National monetary authority holdings
- liquidityConvertibility to cash
- money supplyTotal currency in circulation
- credit controlOversight of borrowing limits
- quantitative easingAsset purchases to boost economy
tightening · easing · monetary policy · financial stability · lender of last resort · bank reserves
Current equivalent of future sum
- future valueAmount after growth
- net present valueDiscounted sum of cash flows
- cost of capitalRequired return on investment
- valuationAssessment of monetary worth
yield · risk premium · cash flow analysis · IRR · opportunity cost
National currency management institution
- fiscal policyState spending and taxation
- stimulusWhat prompts a reaction
- GDPNational output abbreviation
- economic growthSustained output increase
recession · government spending · budget deficit · business cycle · economic indicators · unemployment · consumer spending · currency value
Borrowed money repaid later
- borrowerOne who takes temporarily
- creditworthinessAbility to repay debts
- collateralSecurity for debt
- principalChief school administrator
amortization · mortgage · refinance · debt · APR · repayment · finance charge · installment
Economic spending ability
- cost of livingPrice of basic necessities
- price indexMeasure tracking price changes
- CPIInflation measurement abbreviation
- price stabilityConsistent general price levels
deflation · hyperinflation · stagflation · adjustment · indexation · expansionary · contractionary
federal reserve
National monetary authority holdings
- liquidityConvertibility to cash
- money supplyTotal currency in circulation
- credit controlOversight of borrowing limits
quantitative easing · tightening · easing · monetary policy · financial stability · lender of last resort · bank reserves
present value
Current equivalent of future sum
- future valueAmount after growth
- net present valueDiscounted sum of cash flows
- cost of capitalRequired return on investment
valuation · yield · risk premium · cash flow analysis · IRR · opportunity cost
central bank
National currency management institution
- fiscal policyState spending and taxation
- stimulusWhat prompts a reaction
- GDPNational output abbreviation
economic growth · recession · government spending · budget deficit · business cycle · economic indicators · unemployment · consumer spending · currency value · trade balance
loan
Borrowed money repaid later
- borrowerOne who takes temporarily
- creditworthinessAbility to repay debts
- collateralSecurity for debt
principal · amortization · mortgage · refinance · debt · APR · repayment · finance charge · installment · interest-bearing
purchasing power
Economic spending ability
- cost of livingPrice of basic necessities
- price indexMeasure tracking price changes
- CPIInflation measurement abbreviation
price stability · deflation · hyperinflation · stagflation · adjustment · indexation · expansionary · contractionary
- bondsbond, corporate bond, corporate bonds, government bond, municipal bond
- hotel chargesresort fee, hotel fee, service fee, hotel tax, parking fee
- ratesroyalty, per diem, percentage, ratio, bond yield
- corporate financecost of capital, investment, capital markets, NPV, debt financing
- economic policymonetary policy, tax policy, fiscal discipline, fiscal stimulus, fiscal restraint
- financial metricsROI, ROE, EPS, P/E ratio, PE ratio
rate, discount, rates, discounted, discounts, discounting, discounter, discounters, discountable