400 Must Have Words for the TOEFL LESSON 20 – Financial Systems Vocabulary Test

Word List

allocate [ˈæləˌkeɪt] v.

To give out different amounts for different purposes

→ The budget allocates $58 billion to the military and only about $2 billion to education.

Usage tips     Things that can be allocated are things that can be “spent”—money, time, energy, etc.

Parts of speech     allocation n.

commodity [kəˈmɑdədi] n.

A thing that can be bought and sold,such as grain, oil, or wood

→ Tulip bulbs were one of the most valuable commodities in seventeenth-century Holland.

Usage tips     A thing is called a commodity only in the context of buying or selling it.

decline [dɪˈklaɪn] v.

To decrease in power or amount

→ America’s railroads declined because the automobile dominated American life.

Parts of speech     decline n.

equity [ˈekwɪtɪ] n.

The value of one’s share in an investment

→ Barnard’s equity in the business was one-third,or about $350,000.

Usage tips     In this meaning, equity is always singular and usually followed by an in phrase.

inflation [ɪnˈfleɪʃən] n.

A situation in which prices for many items rise quite fast

→ During the rapid inflation of the 1970s, prices for food and fuel sometimes rose 20 percent in a single month.

Parts of speech     inflate v., inflationary adj.

net [net] adj.

After all costs have been subtracted from an amount

→ My gross salary is around $35,000, but my net pay is closer to $29,000.

Parts of speech     net v., net n.

per capita [pəˈkæpɪtə] adv.

For each person

→ Research shows we’re likely to sell 15 light bulbs per capita per year in medium-sized cities.

Parts of speech     per capita adj.

regulate [ˈrɛɡjəˌleɪt] v.

Control according to a set of rules

→ Trading on the New York Stock Exchange is regulated by officials of the exchange and by federal law.

Parts of speech     regulation n., regulatory adj.

subsidy [ˈsʌbsɪdɪ] n.

Money given by a government or other organization to support an activity

→ Federal subsidies to grain farmers have helped them stay in business despite three years of bad weather.

Parts of speech     subsidize v.

tangible [ˈtændʒəbl] adj.

Obviously real because it can be seen, touched, or otherwise observed

→ One tangible benefit of putting electrical cables underground is a clearer view of the sky.