discount rateˈdiscount rateFINANCEBANKING1the rate charged by a CENTRAL BANK for lending to other banks. Changes in this rate will influence interest rates in the economy as a wholeThe central bank increased its discount rate to discourage borrowing.
3the interest rate used to calculate the DISCOUNTED CASH FLOW from an investmentAt a discount rate of 20%, which project should be accepted?
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