The time value of money is different in the future, because from today’s point of view, inflation will cause tomorrow’s cash flow not to be as much as today’s cash flow; basically this means that today your dollar cannot be purchased in the future. . On the other hand, there are uncertain risk factors because all forecasting models have a certain degree of uncertainty in their predictions. Even the best financial analysts cannot fully predict the company’s unforeseen events in the future, such as a reduction in cash flow caused by a market crash. Since this uncertainty is related to the certainty of current cash value, we must discount future cash flows to take due account of the risks that companies are taking while waiting to receive cash flows. In the US, the Fed controls the discount rate, which is the rate at which the Fed collects loans from commercial banks. The Fed’s discount rate is divided into three discount window plans: major credit, secondary credit and seasonal credit, each with its own interest rate. Major credit plans are reserved for commercial banks with top reserves, as these loans are usually only offered in a short period of time (usually overnight). For institutions that do not qualify for the program, the secondary credit program can be used to finance short-term needs or to resolve financial difficulties; for people with different financial needs throughout the year, such as banks near summer vacations or large farms that only harvest twice a year, Provide a seasonal credit plan.