Meaning & use
rediscount
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Meanings
verbtransitivefinancetechnical
To buy back or discount a bill of exchange again, as when a central bank takes bills a commercial bank has already discounted.
Grammar: Takes an object: rediscount a bill.
Patterns
- rediscount something with someone
The commercial bank chose to rediscount the bills with the central bank.
Central banks may rediscount trade bills during a credit shortage.
The firm asked its bank to rediscount the notes at a lower rate.
nouncountablefinancetechnical
The act of discounting a bill again, or the amount involved in doing so.
Grammar: Countable: a rediscount of the bills.
Patterns
- a rediscount of something
- rediscount rate
The rediscount gave the bank fresh cash.
Rediscounts rose sharply during the credit crunch.
The central bank announced a lower rediscount rate.
Word forms
| third person singular | rediscounts |
|---|---|
| past tense | rediscounted |
| -ing form | rediscounting |
| plural | rediscounts |
Common combinations
- rediscount rate
- The rediscount rate was cut by half a point.
- rediscount a bill
- The bank decided to rediscount the bill.
- rediscount window
- Banks used the rediscount window for emergency funds.
- rediscount policy
- A new rediscount policy was announced.
Synonyms and how they differ
Word family
Commonly confused: rediscount or redeem?
rediscount vs redeem
Redeem means to exchange something for its value, while rediscount means to discount a bill again.
Practice
What does a bank do when it rediscounts a bill?
Choose one answer.
Rediscounting means discounting a bill that has already been discounted. The other options do not describe a financial transaction.
Make it your own
Write a sentence using “rediscount”, then check it and compare it with the examples above.