A 'discount' in Second Bank operations was commercial paper—business loans purchased at a discount from face value, with the borrower paying the full face value at maturity, effectively providing credit to businesses through bill discounting rather than direct loans.

definitionpending

Speaker

Dr. Jane Nodell

Evidence Quote

“discounts are basically um commercial paper all right so business loans right and it's called a discount because if I give your borrowing ten thousand dollars that paper would be bought at a discount from face value”

Source

A Masterclass In Central Banking | Professor Jane Knodell— Forward Guidance
Created: 8/11/2026, 1:31:04 AM

My Notes

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