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Advanced Vocabulary for TOEFL - Money and Business

Here you will learn some English words about money and business, such as "soar", "overdue", "quotation", etc. that are needed for the TOEFL exam.

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Advanced Words Needed for TOEFL
to depreciate

to diminish in value, especially over time

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to fluctuate

to vary or waver between two or more states or amounts

Ex: The economy fluctuates, affecting businesses and individuals alike. 
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to plummet

to decline in amount or value in a sudden and rapid way

Ex: After the disappointing earnings report, the company's stock value began to plummet. 
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to soar
to soar
[Verb]

to increase rapidly to a high level

Ex: The price of Bitcoin soared to an all-time high last week. 
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convertible
convertible
[Adjective]

able to be changed from one form of currency, investment, or security into another

Ex: The convertible currency can be easily exchanged for another currency at the current exchange rate. 
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deregulatory
deregulatory
[Adjective]

relating to the removal or reduction of governmental power or regulations from an industry, commodity, etc.

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extravagant
extravagant
[Adjective]

costing a lot of money, more than the necessary or affordable amount

Ex: She threw an extravagant birthday party with live music and gourmet catering. 
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fiscal
fiscal
[Adjective]

relating to government revenue or public money, especially taxes

Ex: The government faces challenges in balancing fiscal priorities while addressing social needs. 
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laissez-faire
laissez-faire
[Adjective]

relating to a policy in which private businesses are allowed to thrive without government control

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overdue
overdue
[Adjective]

‌not paid, done, etc. within the required or expected timeframe

Ex: The bill payment is overdue, and late fees may apply. 
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alimony
alimony
[noun]

the money that is demanded by the court to be paid to an ex-spouse or ex-partner

Ex: After the divorce, she was awarded monthly alimony payments to support her financially. 
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arrears
arrears
[noun]

money that is owed and not yet paid

Ex: He finally paid off his arrears from the last six months. 
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collateral

a loan guarantee that may be taken away if the loan is not repaid

Ex: When securing a loan, the bank often requires borrowers to provide collateral, such as real estate or vehicles, to mitigate the risk of default. 
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incentive
incentive
[noun]

a payment or concession to encourage someone to do something specific

Ex: The company offered a bonus as an incentive for employees who exceeded their sales targets. 
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audit
audit
[noun]

a formal inspection of a business's financial records to see if they are correct and accurate or not

Ex: The company underwent an audit to ensure compliance with financial regulations. 
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bailout
bailout
[noun]

an act of giving money to a foreign country, a failing company, or an organization on the verge of collapse to ensure their safety from bankruptcy

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insolvency

the state or condition of not having enough money to pay one's debts

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quotation
quotation
[noun]

a statement indicating the cost of a specific service or piece of work

Ex: The contractor provided a detailed quotation for the renovation project, outlining materials and labor costs. 
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crunch
crunch
[noun]

a challenging situation caused by a shortage, such as time, money, or resources, that requires immediate attention or action

Ex: The company faced a financial crunch after losing a major client. 
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deflation
deflation
[noun]

(economics) a decrease in the amount of money in an economy, resulting in falling or unchanged prices

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dividend
dividend
[noun]

an amount of money paid regularly to the shareholders of a company

Ex: The company announced a quarterly dividend of $1 per share. 
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leverage
leverage
[noun]

(finance) the value of a company's shares in relation to its debts

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ransom
ransom
[noun]

an amount of money demanded or paid for the release of a person who is in captivity

Ex: The kidnappers demanded a large ransom for the safe return of the CEO's daughter. 
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subsidy
subsidy
[noun]

an amount of money that a government or organization pays to lower the costs of producing goods or providing services so that prices do not increase

Ex: The government provides subsidies to farmers to support agricultural production and maintain food security. 
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tariff
tariff
[noun]

a tax paid on goods imported or exported

Ex: The government imposed a tariff on imported steel to protect domestic producers. 
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usury
usury
[noun]

the practice of lending money at excessively high interest rates, considered unethical or illegal

Ex: The lender was accused of usury after charging triple-digit interest. 
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liquidity
liquidity
[noun]

financial assets in the form of money or able to be easily converted into money

Ex: The company maintained high liquidity to cover unexpected expenses. 
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monetarism

the theory or policy of controlling the amount of money in circulation as the preferred method of stabilizing the economy

Ex: Monetarism emphasizes the role of monetary policy over fiscal policy. 
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stagflation

an economic situation with persistent high inflation and a high unemployment rate

Ex: The country experienced stagflation, with prices rising and jobs disappearing. 
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clientele
clientele
[noun]

the collective body of clients served by a business, professional, or institution

Ex: The boutique's clientele favored minimalist fashion and high-end fabrics. 
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conglomerate

a corporation formed by merging different firms or businesses

Ex: The conglomerate expanded its operations by acquiring companies in various industries such as technology, healthcare, and consumer goods. 
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subsidiary

a business company controlled or owned by a holding or parent company

Ex: The tech giant acquired a new subsidiary to expand its product line. 
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infomercial

an advertising television program that tries to promote a product by giving a lot of information about it in a supposedly objective manner

Ex: The infomercial for the new kitchen appliance demonstrated its multiple uses and featured testimonials from satisfied customers. 
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curtailment

the act of reducing or limiting something in order to reach financial stability

Ex: The company announced a curtailment of its production operations in response to declining market demand. 
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outsourcing

the process of having someone outside of a company provide goods or services for that company

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broker
broker
[noun]

a person whose job is to sell and buy assets and goods for other people

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loan shark

a person who lends money to people, typically under illegal conditions, at a very high rate of interest

Ex: He borrowed money from a loan shark and ended up owing twice as much. 
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tycoon
tycoon
[noun]

a rich and powerful person who is successful in business or industry

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magnate
magnate
[noun]

a wealthy, influential, and successful businessperson

Ex: John D. Rockefeller started out as a young businessman and quickly became a titan of industry, ultimately earning the title "magnate. 
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dog eat dog
dog eat dog
[phrase]

(in business, politics, etc.) a situation in which the competition is so fierce that everyone is willing to do whatever it takes to be successful, even if it means harming others

Ex: The tech industry can be dog eat dog, especially for small startups. 
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