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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 company invested capital in new machinery. 
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cost
cost
[noun]

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

Ex: He compared the cost of various insurance plans. 
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income
income
[noun]

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

Ex: His primary source of income is his salary from the tech company where he works. 
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investment

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

Ex: She made a significant investment in stocks, hoping to see substantial returns over the next few years. 
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profit
profit
[noun]

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

Ex: The company reported a significant profit for the fiscal year, reflecting efficient operations and strong sales. 
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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: She bought 100 shares of the tech startup during its IPO. 
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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: The company secured finance for its expansion. 
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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 country's economy grew rapidly due to investments in technology and infrastructure. 
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interest
interest
[noun]

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

Ex: The bank charges 5% interest on personal loans. 
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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: High inflation reduces the purchasing power of consumers. 
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exchange
exchange
[noun]

the act of exchanging or trading one thing for another

Ex: The exchange of gifts during the holidays is a cherished tradition. 
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expense
expense
[noun]

the amount of money spent to do or have something

Ex: Keeping track of your monthly expenses can help you create a realistic budget. 
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fund
fund
[noun]

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

Ex: The school created a fund for new books. 
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