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The discounting of a bill of exchange or promissory note that has already been discounted by someone else, usually by a discount house. A central bank, acting as lender of last resort, may be said to be rediscounting securities submitted to it by brokers in the money market, as the securities will have already been discounted in the market. In some cases the US Federal Reserve Bank will rediscount a financial instrument that has already been discounted by a local bank.

Subjects: Financial Institutions and Services.

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