Discount rate
Discount rate The interest rate that the Federal Reserve charges a bank to borrow funds when a bank is temporarily short of funds. Collateral is necessary to borrow, and such borrowing is quite limited because the Fed views it as a privilege to be used to meet short-term liquidity needs, and not a device to increase earnings.
Source: http://www.saint-claire.org/resources/Dictionary-of-Financial-and-Business-Terms.pdf
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