Rediscounting is a financial term that refers to the act of borrowing money by a bank from a Central bank, such as the Federal Reserve. Here's a step-by-step explanation:

1. A commercial bank might have given out loans to their customers using the money they have. This might lead to a situation where the bank runs out of money to lend further.

2. In such a case, the bank can approach the Central bank to borrow money. The Central bank lends money to the commercial banks at a certain interest rate known as the

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Rediscounting is a financial term that refers to the act of borrowing money by a bank from a Central bank, such as the Federal Reserve. Here's a step-by-step explanation:

1. A commercial bank might have given out loans to their customers using the money they have. This might lead to a situation where the bank runs out of money to lend further.

2. In such a case, the bank can approach the Central bank to borrow money. The Central bank lends money to the commercial banks at a certain interest rate known as the

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Rediscounting is a financial term that refers to the act of borrowing money by a bank from a Central bank, such as the Federal Reserve. Here's a step-by-step explanation:

1. A commercial bank might have given out loans to their customers using the money they have. This might lead to a situation where the bank runs out of money to lend further.

2. In such a case, the bank can approach the Central bank to borrow money. The Central bank lends money to the commercial banks at a certain interest rate known as the

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