modul New Uzbekistan

VOCABULARY
A market-based economy- bozor munosabatlariga asoslangan iqtisod
Currency- valyuta
Agricultural – yerga oid
Convertibility – o’zgaruvchanlik
Shareholder- hissador
Transparency –oshkoralik, shaffoflik
Efficiency- samaradorlik
Monetary policy- valyuta siyosati
Import restrictions- import ta’qiqlari


Questions
1. What is import restrictions?
2. When did our government announce a new development strategy?
3.In what areas do we need substantial structural reforms?
4. What is the transformation to market economy?

1.17 –modul

The discount rate. Gram: Countable and uncountable nouns.

The discount rate is the interest rate charged to commercial banks and other financial institutions for short-term loans they take from the Federal Reserve Bank.

The term discount rate can refer to either the interest rate that the Federal Reserve charges banks for short-term loans or the rate used to discount future cash flows in discounted cash flow (DCF) analysis.
In a banking context, discount lending is a key tool of monetary policy and part of the Fed's function as the lender-of-last-resort.
In discounted cash flow analysis, the discount rate expresses the time value of money and can make the difference between whether an investment project is financially viable or not.
The term “discount rate” refers to the factor used to discount the future cash flows back to the present day.
The discount rate can mean: 1. The interest rate that the central bank charges on money it lends to commercial banks. The US Federal Reserve, for example, does it through its discount window loan process. 2. A reduction of an invoice total if the purchaser pays before a specific date. In this sense, it also means the reduction in price per item if you buy more than a certain number. 3. The interest rate we use in discounted cash flow analysis to determine the current value of future cash flows. 4. The rate at which you can cash in an accounts receivable or bill of exchange before its maturity date.
The term may also apply to the fees that merchants have to pay when their customers use credit cards.
What Does Discount Rate Mean?
It can also be considered the interest rate used to calculate the present value of future cash flows.
Thus, it’s a required component of any present value or future value calculation. Investors, bankers, and company management use this rate to judge whether an investment is worth considering or should be discarded.
What Does Discount Rate Mean?
The discount rate is a rate of return that is used in a business valuation to convert a series of future anticipated cash flow from a company to present value under the discounted cash flow approach.
The most common method to derive the discount rate is using a weighted average cost of capital approach which represents a weighted average of the after-tax cost of debt and the cost of equity where the weighting is based on a company’s target debt-equity ratio, measured at market.
A capitalization rate and discount rate are often confused in the determination of business value. They are different in the fact that a capitalization rate is applied to a single discretionary cash flow, whereby a discount rate is applied to a series of cash flows presented in a forecast. The capitalization rate is calculated by deducting a growth factor from the discount rate.