Vocabulary for Finance
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bank: noun. An establishment for keeping safe the money of the public, private persons or businesses; for issuing loan or exchanging money for the extension of credit and facilitating the transmission of funds
Examples:
My bank HSBC is an Asian-rooted financial institution.
Because of their financial crisis, US banks have recently lowered interest rates on savings.
bank: intransitive verb. To engage in financial activities such as depositing money, withdrawing money, transferring money or engaging in other activities banks offer
Example: I bank on the Internet nowadays, it's much more convenient less secure, though.
bond: noun. 1. The amount of the money guaranteed to the person who lends money for financial gains. 2. An insurance agreement promising safety from financial loss
Example:
I have purchased government bonds recently because they offer higher interest and security.
The World Bank: compound proper noun. A United States' government institution in charge of lending money to nations for economic growth or activity in return for interest payments, usually at lower rates
Examples:
The World Bank may decrease loans to third world countries this year because of the economic crisis of the US.
Third world economies are complaining of the World Bank's high interest charges.
finances: noun. Management of funds; the obtaining of funds or capital. It takes plural verb forms when it means money or other liquid resources of a government, business, group or an individual
Example:
It is all about the governmental finance allocated to the poor whether or not there will be improvement in social services for them.
finance or finances: noun. It takes singular or plural verb forms in different regions of the US when it means the status of financial resources of a person or group.
Example:
My finances is in bad shape because I have lost my job.
OR
My finances are in bad shape because I have lost my job.
market: noun. The available supply of potential demand for specified goods or services
Example:
The housing market is picking up slowly after the collapse of the real estate industry since last year.
financial institution: compound noun. The system that includes the circulation of money, the granting of credit, the making of investments and the provision of banking facilities
Examples:
Financial institutions must act more responsibly in lending money to the public and businesses.
In the last decade the United States have had lenient regulations for the finance industry, causing the collapse of the financial markets in the US and world.
financial market: compound noun. The course of commercial activity by which the exchange of commodities is effected; the extent of demand
Example:
Financial markets in the United States have made some profit in the last two months because of the economic stimulus money given to them by the Obama Administration.
interest: noun. 1. Is a charge that banks impose on borrowers, generally calculated as a percentage of the amount borrowed; 2. The profit earned on invested capital
Example: These days, US banks are paying poor interests to consumers on their savings and investments.
interest rate: compound noun. The percentage of money the lender charges the borrower
Example: Interest rates on investment and mortgage loans are little bit lower recently because of the economic downturn in the United States.
security: noun. 1. something in value provided, deposited or promised to make certain the fulfillment of an obligation; 2. an instrument of investment in the form of a document such as CD
Example: The US government guarantees to the public the most reliable security on bonds, therefore it is wise to buy US backed bonds for safe investment.
CD: compound noun. Acronym for the Certificate of Deposit. A money-market bond of a predetermined value paying fixed interest, and fully payable without penalty only on maturity
Example: I have sold out my CD's because my bank has lowered the CD interest rate by 2 percent.
treasury securities: compound noun. Bonds issued by the Federal Treasury to the public in exchange of money borrowed from the public.
Example: The US treasury securities do not pay high interest but they are still good investment because they are more risk free than other securities.
monetary policy: compound noun. Rules and regulations imposed by the US Federal Treasury on financial institutions for financial activity
Example: In the face of the recent financial collapse, the Obama Administration has regulated the monetary policies for US banks.
the Fed: proper noun. Acronym for The Federal Treasury of the United States. The Fed determines the monetary policy of US markets
Example: The Fed has injected billions of dollars into US financial markets in an effort to help stimulate the economy.
fiscal: adjective. 1. Related to financial budgetary matters; 2. Related to taxation, public revenues or public debt
Example: Governments must be more efficient when it comes to fiscal responsibility for the poor.
fiscal balance: compound noun. Determination of spending on economic activities for a given time period, generally one year
Example: I understand the need for fiscal balance of government budgets, but governments mostly impose more burden on the poor by cutting down social services for them in difficult economic times.
stimulus: noun. Extra financial resources allocated to help to grow economic activities of a group, institution or nation
Example: We are all hoping the Obama stimulus package will improve the economy.
fiscal stimulus: compound noun. Expanding the budget resources for economic growth based on one year planning
Example: All US states have been given fiscal stimulus to better cope with the economic crisis.
injection: Feeding money into business, financial markets in order to stimulate economic activity
Example: Monetary injection into the economy helps to slow down unemployment for businesses get more money, as a result they pay their bills.
liquidity: noun. Money in the form of cash as an outcome of sold assets of a business
Example: Liquidity is one way of dealing with cash problems in business. Businesses in hard times sell their assets in order to obtain cash they need.
inflation: noun. The state of price increase in products and services supplied in an economy, without necessarily a growth of value in products or services
Example: The inflation in third world countries have surged to the highest levels because of the recent over all economic crisis in the world.
inflationary: adjective. Related to inflation, price increase
Example: Spending excessively in economic downturns brings about more financial problems to individuals.
inflationary spending: compound noun. Spending financial resources on only consumption products and services but not on production or businesses' growth
Example: Inflationary spending must be kept as low as possible in economic downturns such as the time we are in currently. Instead we must save more, so businesses can borrow more money to increase production.
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