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Essential Vocabulary for TOEFL - The Economy

Here you will learn some English words about the economy, such as "credit", "due", "yield", etc. that are needed for the TOEFL exam.

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Essential Words Needed for TOEFL

to provide funds or an amount of money

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capital
[noun]

money or property owned by a person or company that is used for investment or starting a business

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debit
[noun]

an entry indicating an increase in assets or an expense, and a decrease in debts or income

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expense
[noun]

the amount of money spent to do or have something

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

(of a payment, debt, etc.) scheduled or required to be paid immediately or at a specific time

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yield
[noun]

an amount of profit gained from an investment or business

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a document given by a bank to an account holder, providing a summary of all financial transactions within a specified period

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to climb
[Verb]

to increase in terms of amount, value, intensity, etc.

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to crash
[Verb]

(economics) to lose value suddenly and significantly

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collapse
[noun]

a sudden decrease in something's value, such as a price or stock

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income
[noun]

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

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revenue
[noun]

the total income generated from business activities or other sources.

Ex: The restaurantrevenue increased during the holiday season .
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fortune
[noun]

a very large sum of money

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fee
[noun]

the money that is paid to a professional or an organization for their services

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to put an amount of money or other item of value into a bank account

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to take money out of an account, fund, or financial institution

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to freeze
[Verb]

to legally prevent money, property, or a bank account from being used or sold

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to withdraw more money from a bank account than is available

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donation
[noun]

something that is voluntarily given to someone or an organization to help them, such as money, food, etc.

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budget
[noun]

the sum of money that is available to a person, an organization, etc. for a particular purpose and the plan according to which it will be spent

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broke
[Adjective]

having little or no financial resources

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a situation in which a person or business is unable to pay due debts

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to make a person or thing move from a place, situation, or person to another

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economy
[noun]

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

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the business of trading and exchanging shares of different companies

Ex: The global pandemic had a profound impact on stock market, leading to volatile fluctuations .
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recession
[noun]

a hard time in a country's economy characterized by a reduction in employment, production, and trade

Ex: Economists predicted that recession would last for several quarters before signs of recovery would emerge .
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invoice
[noun]

a list of goods or services received and their total cost

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the process or provision of financial aid for something such as a charity or cause, usually through holding special events

Ex: The marathon was held as fundraising event to support local animal shelters .
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a system of international trading in which there are no restrictions or taxes on goods bought or sold

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an economic system that is not operated by the government rather by free competition and supply and demand

Ex: The deregulation of industries is often a key component of transitioning to free market economy .
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decline
[noun]

a continuous reduction in something's amount, value, intensity, etc.

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commodity
[noun]

(economics) an unprocessed material that can be traded in different exchanges or marketplaces

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