rediscounted
Resold to bank
Rediscounted describes a financial instrument, typically a promissory note or bill of exchange, that has been discounted a second time.
When a bank discounts a customer's note, it buys the note for less than face value; if that bank then sells the note to another institution (often a central bank) at a further discount, the note has been rediscounted.
The Federal Reserve rediscounted commercial paper to provide liquidity during the crisis.
National currency management institution
- lender of last resortEmergency credit source for banks
- quantitative easingAsset purchases to boost economy
- bank rateOfficial borrowing cost
- money supplyTotal currency in circulation
Security for debt
- secondary marketExchange for existing securities
- bank reservesFunds banks hold back
- short-term loansTemporary borrowed money
- clearinghouseCentral settlement agency
liquidity · refinancing · security · overdraft · credit line · haircut · maturity · face value
Negotiable instrument ordering payment
- promissory noteWritten debt obligation
- draftPreliminary version of text
- clean billFormal approval of condition
central bank
National currency management institution
- lender of last resortEmergency credit source for banks
- quantitative easingAsset purchases to boost economy
- bank rateOfficial borrowing cost
collateral
Security for debt
- secondary marketExchange for existing securities
- bank reservesFunds banks hold back
- short-term loansTemporary borrowed money
clearinghouse · liquidity · refinancing · security · overdraft · credit line · haircut · maturity · face value · proceeds
bill of exchange
Negotiable instrument ordering payment
- promissory noteWritten debt obligation
- draftPreliminary version of text
- clean billFormal approval of condition