Discount rate/Definition: Difference between revisions

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imported>Nick Gardner
(New page: The percentage by which the current value of an asset (to a person or to a commercial organisation) exceeds its value in a year's time. For a person, it is equal to that person’s...)
 
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The percentage by which the current  value of an asset (to a person or to a commercial organisation)    exceeds its value in a year's time. For a person, it is equal to  that person’s   marginal rate of substitution between consumption in the two successive years.  For a commercial  organisation, it is  equal to  that  organisation’s ''cost of capital'' (qv).
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(i) The percentage by which   current  value  exceeds value in a year's time.  (ii) The rate at which banks may borrow at their central bank's [[discount window]].

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A definition or brief description of Discount rate.

(i) The percentage by which current value exceeds value in a year's time. (ii) The rate at which banks may borrow at their central bank's discount window.

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