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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

Ex: Over the years , the government has successfully financed numerous infrastructure projects .
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capital
[noun]

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

Ex: He decided to invest his capital in real estate , hoping for high returns .
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credit
[noun]

the ability to buy something from a shop or receive money from a bank based on trust, without paying for it immediately

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debit
[noun]

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

Ex: The software automatically applies debits and credits .
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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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due
[Adjective]

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

Ex: The next installment for the project funding is due in two weeks .
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yield
[noun]

an amount of profit gained from an investment or business

Ex: The stock portfolio showed a steady yield, generating consistent profits for the shareholders .
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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

Ex: Online banking allows customers to access and download their bank statements electronically for convenience and record-keeping purposes .
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benefit
[noun]

the occasions or events like concert or performance that are arranged with the aim of generating funds for those who are in need

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to climb
[Verb]

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

Ex: With the growing demand for online services , internet usage began to climb significantly .
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to crash
[Verb]

(economics) to lose value suddenly and significantly

Ex: When the company ’s stock crashed, many investors faced significant losses .
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collapse
[noun]

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

Ex: The collapse of the housing market left many people unable to sell their homes .
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the act of remitting a person or organization's debts

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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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revenue
[noun]

the total income generated from business activities or other sources

Ex: The restaurant 's revenue increased during the holiday season .
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fortune
[noun]

a very large sum of money

Ex: Despite his vast fortune, he lived a surprisingly modest lifestyle .
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fee
[noun]

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

Ex: There 's an additional fee if you require expedited shipping for your order .
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to put an amount of money or other item of value into a bank account

Ex: The student deposited the scholarship award in her college tuition account to cover expenses .
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to take money out of an account, fund, or financial institution

Ex: They planned to withdraw a portion of their savings to start their own business .
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to freeze
[Verb]

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

Ex: During divorce proceedings , a court may issue an order to freeze joint assets until a settlement can be reached .
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to withdraw more money from a bank account than is available

Ex: He was worried that he might overdraw his account after making a large purchase .
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donation
[noun]

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

Ex: They appreciated the generous donation from the community .
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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

Ex: The project ran over budget, leading to cuts in other areas .
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asset
[noun]

a valuable resource or quality owned by an individual, organization, or entity, typically with economic value and the potential to provide future benefits

Ex: Goodwill , reflecting a company 's reputation and customer loyalty , is considered an asset on its balance sheet .
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broke
[Adjective]

having little or no financial resources

Ex: He felt embarrassed admitting to his friends that he was broke and could n't join them for dinner .
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a situation in which a person or business is unable to pay due debts

Ex: The risk of bankruptcy increased as the market conditions worsened .
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trading practices that do not put consumers at a disadvantage

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

Ex: The software developer had to transfer code snippets from one section of the program to another .
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trading
[noun]

the practice of buying and selling goods

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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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‌the relationship between the amount of goods or services that are available and the amount that people want to buy, especially when this controls prices

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the business of trading and exchanging shares of different companies

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

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

Ex: Economists predicted that the 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

Ex: He reviewed the invoice for discrepancies before approving it for payment .
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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 university alumni association hosts fundraising events to provide scholarships for students in need.
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a system of international trading in which there are no restrictions or taxes on goods bought or sold

Ex: Negotiations for a new free trade deal between the two countries stalled due to disagreements over agricultural tariffs .
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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 a free market economy .
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decline
[noun]

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

Ex: Measures were introduced to address the decline in biodiversity .
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commodity
[noun]

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

Ex: Investors often include commodities in their portfolios as a hedge against inflation and market volatility .
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Essential Vocabulary for TOEFL
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