To be continued Rediscount facilities are one of the means by Which banks borrow funds from central bank Banks use immature commercial papers that have been discounted by themselves to obtain loans from central bank. and the central bank discounts the commercial papers for a second time the central bank can adjust the rediscount rate to affect the banks cost of borrowing money from the central bank, by means of which the central bank controls the money supplyTo be continued  Rediscount facilities are one of the means by which banks borrow funds from central bank. Banks use immature commercial papers that have been discounted by themselves to obtain loans from central bank, and the central bank discounts the commercial papers for a second time. The central bank can adjust the rediscount rate to affect the bank’s cost of borrowing money from the central bank, by means of which the central bank controls the money supply. 11