How Do You Spell REDISCOUNT?

Pronunciation: [ɹˌiːdɪskˈa͡ʊnt] (IPA)

Rediscount is a financial term that refers to the act of obtaining a loan by pledging a negotiable instrument as collateral. The spelling of this word can be explained using the International Phonetic Alphabet (IPA). It is pronounced as /riːdɪskaʊnt/. The first syllable "ree" is pronounced like "me", the "d" is pronounced like "duh", "is" is pronounced as "iz", the "c" is pronounced as "k", the "a" is pronounced like "ah", and the final syllable "ount" is pronounced like "ount" in "mountain".

REDISCOUNT Meaning and Definition

1. Rediscount refers to the process of a central bank or a financial institution discounting or reselling a financial instrument that has already been discounted by another financial institution. This practice typically involves the central bank or the financial institution buying the financial instrument at a discount from its face value.

   Rediscounting can occur when a commercial bank or other financial institution needs liquidity or cash flow. They may have discounted a financial instrument, such as a promissory note or a bill of exchange, by lending money against it at a discount. However, they may still need more funds and can choose to rediscount the instrument with the central bank.

   When the central bank rediscounts the financial instrument, it essentially purchases it at a further discount from its face value. This discount reflects the interest or fee charged by the central bank for providing liquidity to the commercial bank or financial institution. Once the rediscount transaction is completed, the central bank becomes the holder of the financial instrument and the commercial bank receives the cash it needs.

   Rediscounting is an important tool used by central banks to regulate and control the money supply in an economy. By adjusting the interest rates at which they rediscount financial instruments, central banks can influence liquidity levels in the banking sector. This, in turn, can impact borrowing costs, economic activity, and inflation rates.

Common Misspellings for REDISCOUNT

• eediscount
• dediscount
• fediscount
• tediscount
• 5ediscount
• 4ediscount
• rwdiscount
• rsdiscount
• rddiscount
• rrdiscount
• r4discount
• r3discount
• resiscount
• rexiscount
• reciscount
• refiscount
• reriscount
• reeiscount
• reduscount
• redjscount

Etymology of REDISCOUNT

The word "rediscount" originated from the combination of two terms: "re-" and "discount".

The prefix "re-" is derived from Latin and means "again" or "back". It is used to indicate repetition, restoration, or reversal.

The word "discount" has its roots in the Old French word "desconter", which means "to count off" or "to deduct". In the context of finance and banking, "discount" refers to the reduction in the value of a sum of money or a negotiable instrument (such as a bill of exchange) when it is redeemed or sold before its maturity date.

Therefore, "rediscount" can be understood as the action of discounting something again or repeatedly.

Plural form of REDISCOUNT is REDISCOUNTS

Conjugate verb Rediscount

CONDITIONAL

I would rediscount

you would rediscount

he/she/it would rediscount

we would rediscount

they would rediscount

CONDITIONAL CONTINUOUS

I would be rediscounting

you would be rediscounting

he/she/it would be rediscounting

we would be rediscounting

they would be rediscounting

CONDITIONAL PERFECT

I would have rediscount

you would have rediscount

he/she/it would have rediscount

we would have rediscount

they would have rediscount

CONDITIONAL PERFECT CONTINUOUS

I would have been rediscounting

you would have been rediscounting

he/she/it would have been rediscounting

we would have been rediscounting

they would have been rediscounting

FUTURE

I will rediscount

you will rediscount

he/she/it will rediscount

we will rediscount

they will rediscount

FUTURE CONTINUOUS

I will be rediscounting

you will be rediscounting

he/she/it will be rediscounting

we will be rediscounting

they will be rediscounting

FUTURE PERFECT

I will have rediscounted

you will have rediscounted

he/she/it will have rediscounted

we will have rediscounted

they will have rediscounted

FUTURE PERFECT CONTINUOUS

I will have been rediscounting

you will have been rediscounting

he/she/it will have been rediscounting

we will have been rediscounting

they will have been rediscounting

IMPERATIVE

you rediscount

we let´s rediscount

NONFINITE VERB FORMS

to rediscount

PAST

I rediscounted

you rediscounted

he/she/it rediscounted

we rediscounted

they rediscounted

PAST CONTINUOUS

I was rediscounting

you were rediscounting

he/she/it was rediscounting

we were rediscounting

they were rediscounting

PAST PARTICIPLE

rediscounted

PAST PERFECT

I had rediscounted

you had rediscounted

he/she/it had rediscounted

we had rediscounted

they had rediscounted

PAST PERFECT CONTINUOUS

I had been rediscounting

you had been rediscounting

he/she/it had been rediscounting

we had been rediscounting

they had been rediscounting

PRESENT

I rediscount

you rediscount

he/she/it rediscounts

we rediscount

they rediscount

PRESENT CONTINUOUS

I am rediscounting

you are rediscounting

he/she/it is rediscounting

we are rediscounting

they are rediscounting

PRESENT PARTICIPLE

rediscounting

PRESENT PERFECT

I have rediscounted

you have rediscounted

he/she/it has rediscounted

we have rediscounted

they have rediscounted

PRESENT PERFECT CONTINUOUS

I have been rediscounting

you have been rediscounting

he/she/it has been rediscounting

we have been rediscounting

they have been rediscounting