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.
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Dr. Jane NodellEvidence 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”
Created: 8/11/2026, 1:31:04 AM
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