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Vocabulary for IELTS General Training (Band 8-9) - Finance and Currency

Here, you will learn some English words related to Finance and Currency that are necessary for the General Training IELTS exam.

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Vocabulary for General Training IELTS (8-9)
price fixing

an agreement between business rivals to not sell products at a lower price

Ex: The company was fined millions of dollars for engaging in price fixing with its competitors, violating antitrust laws. 
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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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contingency

the funds that are set aside for unforeseen expenses that may arise in the future

Ex: The company allocated a portion of its budget as a contingency to cover unexpected costs, such as equipment repairs or legal fees. 
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lump sum
lump sum
[noun]

a single, large payment made in full, instead of smaller payments made over time

Ex: After winning the lottery, Sarah chose to receive her prize as a lump sum rather than in annual installments. 
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overhead
overhead
[noun]

the regular costs required for maintaining a business or an organization

Ex: Rent, utilities, and insurance are all part of the company's overhead. 
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top-up
top-up
[noun]

an extra amount of money added to an existing sum so that it reaches the required total

Ex: Before embarking on the road trip, I stopped at the gas station to top up the tank. 
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bubble
bubble
[noun]

a rapid trend of increase in prices that eventually leads to a collapse

Ex: The housing bubble of the mid-2000s led to a catastrophic collapse in real estate prices and triggered the global financial crisis. 
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face value

the price that is imprinted on a product

Ex: The ticket's face value was $50, but due to high demand, scalpers were selling them for three times that amount. 
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outlay
outlay
[noun]

the sum of money spent

Ex: The total outlay for the renovations was $50,000. 
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receivables

the amount of unpaid debt that a company expects to receive from its customers or another company

Ex: The company's accounts receivables increased significantly this quarter, indicating strong sales but also potential cash flow challenges. 
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seed money

the initial amount of money needed to start a business or project

Ex: The entrepreneur used seed money from family and friends to launch her start-up company. 
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stake
stake
[noun]

an amount of money invested in a business

Ex: She purchased a significant stake in the startup company to support its growth. 
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nickel
nickel
[noun]

a five-cent coin of Canada and the US

Ex: He found a nickel on the ground and added it to his coin collection. 
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corkage
corkage
[noun]

an amount of money charged by a restaurant for drinking a wine that was bought from somewhere else by the customer

Ex: The restaurant allows you to bring your own wine, but they charge a corkage fee of $15 per bottle. 
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gratuity
gratuity
[noun]

an additional amount of money given to someone for their services

Ex: The waiter received a generous gratuity for providing excellent service throughout the meal. 
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building society

a financial institution that accepts savings deposits and provides mortgage loans

Ex: She opened an account at the local building society. 
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cash dispenser

an automatic machine that allows people to withdraw money or do other banking operation using a debit card

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clearing house

a financial institution that oversees exchanging cheques and other financial transactions

Ex: The clearing house acts as an intermediary between buyers and sellers in financial markets, facilitating the settlement of transactions. 
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giro
giro
[noun]

a British banking system in which funds are transferred from one account to another upon authorization, often via bank or post office

Ex: He paid his rent using the giro system. 
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line of credit

the maximum amount of loan that a customer is allowed to receive

Ex: The small business secured a line of credit from the bank to cover operating expenses during lean months. 
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fintech
fintech
[noun]

the technological innovation in financial services

Ex: The fintech company developed a mobile app that allows users to easily transfer money, pay bills, and track their expenses in real-time. 
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pension pot

the total accumulated savings set aside for retirement

Ex: As retirement approached, Sarah began contributing more to her pension pot to ensure a comfortable lifestyle in her later years. 
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child support

a regular payment from one parent to financially support the child after a divorce

Ex: The court ordered John to pay monthly child support to help cover the costs of raising his two children. 
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corporate welfare

subsidies, incentives, or benefits given by the government to big or growing businesses and corporations

Ex: Critics argue that corporate welfare distorts the free market by giving unfair advantages to certain businesses through government subsidies. 
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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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to wind down

to slowly reduce the activity of a business or organization, leading to its eventual closure

Ex: The company plans to wind down its operations over the next six months. 
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