Secured Loans
Non-interest-bearing money market instruments that are issued at a discount and
redeemed at maturity for full face value, e.g. U.S. Treasury bills.
Discount window
Facility provided by the Fed enabling member banks to borrow reserves against
collateral in the form of governments or other acceptable paper.
Discrete compounding
Compounding the time value of money for discrete time intervals.
Discrete random variable
A random variable that can take only a certain specified set of discrete possible
values - for example, the positive integers 1, 2, 3, . . .
Discrete variable
Variable like 1,2,3. Bond ratings are examples of discrete classifications.
Discretionary account
Accounts over which an individual or organization, other than the person in
whose name the account is carried, exercises trading authority or control.
Discretionary cash flow
Cash flow that is available after the funding of all positive net present value
(N.P.V.) capital investment projects; it is available for paying cash dividends,
repurchasing common stock, retiring debt, and so on.
Discriminant analysis
A statistical process that links the probability of default to a specified set of
financial ratios.
Disintermediation
Withdrawal of funds from a financial institution in order to invest them directly.
Distributed
After a Treasury auction, there will be many new issues in dealers hands. As
those issues are sold, they are said to be distributed.
