Effect discount: what it is – Dictionary of Economics

Financial operation by which a certain amount is deducted from a capital to be made effective in the future for its immediate obtaining. That amount deducted is the price of the transaction for the person who requests the funds and the yield obtained by the person who offers them. For example, the discount of a bill of exchange allows its collection to be advanced in exchange for a reduction in its value.

Origin: Bank of Spain

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