Question

What is rediscounting of bills explained?

Answer 1

Banks may rediscount these short-term debt securities to assist the movement of a market that has a high demand for loans. When there is low liquidity in the market, banks can generate cash by rediscounting short-term securities. Rediscount is a way of providing financing to a bank or other financial institution.

Answer 2

Rediscounting is a way of providing financing to bank or any other financial institution