Discount policy - The United States discount rate policy

The United States Federal Reserve System lends money to eligible commercial institution called discount window, Purposely created in 1913 as a mean to operate the central bank in The United States. The interest on loans given out to commercial institutions are discount rate, which is a monetary policy tool used by the Federal Reserve to stimulate the U.S economy. Commercial banks mark up interest from the loans taken from the discount window to gain profit from interest on loan taken out by the public. With the high interest rates, people are less expected to take out loans. Thus, there are less money circulating in the economy, causing it to move in to a recessionary state. Decline in interest rates are made by the Central Bank if the economy goes into a recession. The Federal Reserve have varieties of tools along with the discount rate to manage and relieve tension in the economy.

Discount policy - Usage of the discount rate during The Great Recession

According to UC Berkeley researchers, commercial institutions started to give loan to subprime borrowers in order to increase profits on risky investments. Since they were more likely to default on their loans, banks were losing money which resulted in increase interest rates. Consequently, interest rate prices are higher than usual, people weren't taking out loans causing the economy to be contractionary. In turn, the The Federal Reserve System recognized the problem and took counter measures to intervene with the downsizing economy. They decreased the interest rates at the discount window to bail out the economy during The Great Recession. Since the commercial banks are able to retrieve loans at a lower rate, this waterfalls down to the general public to be able to circulate money in the economy. Monetary policy used by The Central Banks caused the economy to thrive from the recession by utilizing the discount rate that bails out commercial banks.

Annual effective discount rate - Annual discount rate convertible \,p thly

where \,d^{(p)} is called the annual nominal rate of discount convertible \,pthly.

Annual effective discount rate - Annual discount rate convertible \,p thly

A discount rate applied \,p times over equal subintervals of a year is found from the annual effective rate d as

Annual effective discount rate - Annual discount rate convertible \,p thly

The rate \,d^{(p)} is always bigger than d because the rate of discount convertible \,pthly is applied in each subinterval to a smaller (already discounted) sum of money. As such, in order to achieve the same total amount of discounting the rate has to be slightly more than 1/pth of the annual rate of discount.


Discount may refer to:

Alison Mosshart - Discount

Mosshart formed pop-punk band Discount (for which she was the singer) at the age of 17 with skateboarding friends in Vero Beach, Florida. The band recorded their first album, Ataxia's Alright Tonight when the band members were still in high school, and began touring aggressively throughout the DIY punk underground in North America and Europe. As a front-person, Mosshart distinguished herself through her intense, erratic, and earnest stage presence. Discount's subsequent album, Half Fiction, was subsequently named the 50th Greatest Pop-Punk Album of all time by Rolling Stone magazine. The band moved from Vero Beach to Gainesville, and released their final album, Crash Diagnostic in 2000. The album reflected a move toward more angular sounds and detached lyrics than the emotionally frank pop-punk of the previous two albums. After touring in support of the album, the band played their last show in Gainesville in August, 2000.

Discount store

A "full-line discount store/shop" or "mass merchandiser", such as Aldi or Lidl, may offer a wide assortment of goods with a focus on price rather than service, display or wide choice within lines. Meanwhile, a "specialty", "single line" or "category killer" discount store/shop, such as Toys "R" Us or Staples, may specialise in specific merchandise lines, relying on bulk purchase and efficient distribution to keep down costs.

Discount (film)

Discount is a 2014 French comedy-drama film directed by Louis-Julien Petit.

MiniMAX Discount

miniMAX Discount was a supermarket chain from Romania, owned by businessman Dinu Patriciu.

Discount store - Italy

Italy has numerous discount shops. The biggest chain is Eurospin, while others include Tuodì, MD Discount, Todis, DPIU', Discount Dial, Lidl and Penny Market.

Discount store - New Zealand

New Zealand's main discount shops includes The Warehouse.

Discount Tire - Marketing

In 2005, Discount Tire’s “Thank You” commercial entered the Guinness World Records as longest continuously running TV commercial. This commercial depicts an old woman hurling a tire through a Discount Tire store window as the voice-over says, “If ever you’re not satisfied with one of our tires, please feel free to bring it back. Thank you.” The ad first aired in 1975.

Discount theater

As the 21st century dawned, a pair of factors conspired to drive many discount theatres out of business: 1) an oversupply of American movie screens caused by ambitious overbuilding allowed films to stay longer in the first-run theatres, and 2) the delay between theatrical release and VHS or DVD release continued to shrink. This latter factor convinced many moviegoers that it was simply not worth the money, hassle, and possible encounters with noisy fellow patrons and sticky floors, meaning dollar theatres could be in the twilight of their existence.

Discount points

Discount points may be different from origination fee, mortgage arrangement fee or broker fee. Discount points are always used to buy down the interest rates, while origination fees sometimes are fees the lender charges for the loan or sometimes just another name for buying down the interest rate. Origination fee and discount points are both items listed under lender-charges on the HUD-1 Settlement Statement.

Discount store - Australia

Australia has many national and regional discount variety stores including Aldi, Big W, Kmart, Target, The Reject Shop, Cheap and Chips, Dollars and Sense, Shiploads, Red Dot and many more regional players

Couples Discount - Ratings

"Couples Discount" originally aired on NBC on February 7, 2013. In its original American broadcast, the episode was viewed by an estimated 4.15 million viewers and received a 2.1 rating/6% share. This means that it was seen by 2.1 percent of all 18- to 49-year-olds, and 6 percent of all 18- to 49-year-olds watching television at the time of the broadcast. This marked a slight increase in the ratings from the previous episode, "Vandalism". The Office ranked fourth in its timeslot, being beaten by an episode of the ABC series Grey's Anatomy and the CBS police procedural Person of Interest, both of which received a 3.1/8 percent rating, and an installment of the Fox series Glee that received a 2.2/6 percent rating.

Blockage discount - Tax issues

A blockage discount adjusting fair market value also affects the tax consequences of a sale in the U.S., and is frequently a subject of litigation when an artist dies while holding a large collection of her or his own work. For instance, when Georgia O'Keeffe died she had over 400 of her own works in her estate, and when Andy Warhol died he had over 90,000 works, including 4,100 paintings, 9,000 drawings, 19,000 prints and 63,000 photographs. In Georgia O'Keeffe's case, her estate's appraisers established blockage discounts based on solid evidence of market sales, but the IRS used its own valuation and the Tax Court assessed a resulting tax of more than the valuation of the collected works at her death. In Andy Warhol's case Surrogate Court of New York rejected the proposed discounts of Christe's, which averaged 60%. Instead, the court applied an average discount of 25%. The court failed to articulate the specific rationale for its determination, but did state that Warhol was more famous than Smith & O'Keeffe. The court's application of an average discount of 25% has been criticized by attorneys and appraisers because, inter alia, it ignored the necessary time it would take to sell 90,000 pieces of art. Therefore, accountants and estate planners for artists plan with such eventualities in mind.

Blockage discount

Blockage discount is an art-business-related and legal term of art for referring to the money discount assigned to a group of artworks by a single artist when that group of works is to be released to market as a group rather than individually. A blockage discount adjusts the fair market value of the works downward because of the risks of depreciation when a large volume of art is released into the market all at once.

Discount (band)

Discount was an American punk rock band that formed in Vero Beach, Florida, in 1995 and disbanded in 2000. Before disbanding, the group's members relocated to Gainesville, Florida, where they performed their last show in August 2000. They released three full-length albums, several EPs, and two b-side collections. Members have gone on to form The Dead Weather, The Kills, The Kitchen, Black Cougar Shock Unit, Unitas, The Routineers, The Draft, Laserhead, Stolen Parts, and Monikers.