verb
- past tense of rediscount; to discount again, especially when a central bank discounts commercial paper that has already been discounted by another bank
Usage: banking; finance
Examples
- The Federal Reserve rediscounted the commercial paper to provide additional liquidity.
- Banks often have their notes rediscounted by the central bank during tight credit periods.
- The institution rediscounted several promissory notes to meet reserve requirements.
- Commercial banks frequently had their paper rediscounted before modern monetary policy tools.
- The central bank rediscounted eligible securities to support the banking system.