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Vocabulary for IELTS Academic (Band 5) - Finance

Here, you will learn some English words related to Finance that are necessary for the Basic Academic IELTS exam.

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Vocabulary for IELTS Academic (Band 5)
capital
capital
[noun]

assets used to generate more assets, especially in business or production

Ex: The factory needed more capital to increase output .
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cost
cost
[noun]

an amount we pay to buy, do, or make something

Ex: The cost of the dress was more than she could afford .
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income
income
[noun]

the money that is regularly earned from a job or through an investment

Ex: The couple reviewed their monthly income and expenses to create a more effective budget .
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investment

the act or process of putting money into something to gain profit

Ex: The government announced a major investment in renewable energy projects to combat climate change .
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profit
profit
[noun]

the sum of money that is gained after all expenses and taxes are paid

Ex: Without careful budgeting , it 's difficult to achieve consistent profit.
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share
share
[noun]

any of the equal portions of a company's stock that is available for public to buy and gain benefit

Ex: Selling your shares now would mean missing out on future growth .
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finance
finance
[noun]

a type of business activity that involves providing money or other resources, such as capital, to support economic transactions, investments, and other financial activities

Ex: Small businesses often struggle to access finance.
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economy
economy
[noun]

the system in which money, goods, and services are produced or distributed within a country or region

Ex: The global pandemic caused significant disruptions to the economy, affecting businesses and employment worldwide .
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interest
interest
[noun]

the fee paid for borrowing money, calculated as a percentage of the loan amount over time

Ex: "Always compare interest rates before taking a loan," the advisor warned.
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inflation
inflation
[noun]

the ongoing increase in the general price level of goods and services in an economy over a period of time

Ex: Wages failed to keep up with inflation, affecting many households .
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exchange
exchange
[noun]

the act of exchanging or trading one thing for another

Ex: The exchange of currency at the airport had a high fee .
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expense
expense
[noun]

the amount of money spent to do or have something

Ex: Many people use budgeting apps to categorize their expenses and identify areas where they can cut back to save money .
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fund
fund
[noun]

a sum of money that is collected and saved for a particular purpose

Ex: They set up a fund to help flood victims .
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