rediscount

The rate of rediscount, however, will be a penal one.

This will drive down the price and hence drive up the rate of rediscount (r).

The Bank does not announce its rediscount rate, but instead invites the discount houses to offer it bills.

You take the rediscount rate -" Duff glanced at his watch.

Since 1981 the Bank prefers not to lend as such, but rather to purchase ('rediscount') bills from the discount houses.

They are in most respects similar to treasury bills, including the eligibility for rediscount at the Bank of England.

The Bank was authorized, through rediscount transactions, to lend medium-term loans to support investments and economic development.

It lends money out at an artificially cheap rate (the rediscount rate) and conducts open market purchases.

If the Bank of England puts up its rediscount rate, discount houses will have to put up their rate of discount on bills (i.e. pay a lower price for them).

As ex officio Chairman of the Federal Reserve Board, he issued severe warnings and, increased rediscount rates in order to prevent the inflation that the European allies were experiencing.

These include bills of exchange eligible for rediscount at the Bank of England, short-term loans to local authorities, short- and medium-term deposits in the National Savings Bank and certificates of tax deposit.

The Reserve Bank raised its rediscount rate to 17.3 percent, from 17 percent - the highest in two years - the day after the bank's governor, Bob Johnston, called for restraint to cure Australia's "state of self-indulgence.

Thus in Figure 17.3(b), the supply of bills on offer by the discount houses to the Bank falls as the rate of rediscount rises (the supply curve of bills by the discount houses is upward sloping).

SCP is not eligible for rediscount with the Bank of England but it is attractive to a much wider range of investors than bankers' acceptances, and it is widely held outside the banking sector by institutional investors such as insurance companies and pension funds.

The Bank does not rediscount eligible bank bills back to the market in such instances.

Banks may rediscount these short-term debt securities to assist the movement of a market that has a high demand for loans.

The Bank will either rediscount (that is, buy) some of the bills or make loans against the security of such bills.

If redemption demands exhausted their gold or silver reserves, these banks could rediscount the Real Bills to obtain gold or silver.

However, the fact that the Bank of England will rediscount bankers' acceptances means that they are more liquid, ie there is more potential demand for them.

The chief reason for this lagging state of development was the lack of a central institution that could rediscount bank promissory notes to facilitate the exchange of promises of future payment for cash.