Finance Vocabulary

Fiscal -connected with government or public money, especially taxes

Sentence –The country’s fiscal system

Fraudulent -connected with government or public money, especially taxes

Sentence –The company had to remove their advertisement because it was found to make fraudulent claims.

Free enterprise -an economic system in which private businesses compete with each other without much government control

Sentence –Here was a textbook example of free enterprise in the marketplace of religion, a competition in which the fittest survived.

Free market -an economic system in which the price of goods and services is affected by supply and demand rather than controlled by a government

Sentence –She was a supporter of the free market economy.

Free trade -a system of international trade in which there are no restrictions or taxes on imports and exports

Sentence –The EU is a huge free-trade area.

Globalisation – the fact that different cultures and economic systems around the world are becoming connected and similar to each other because of the influence of large multinational companies and of improved communication

Sentence –Globalisation has offered new opportunities, however it is reducing the individuality of countries.

Hyperinflation – a situation in which prices rise very fast, causing damage to a country’s economy

Sentence –Realizing that this type of hyperinflation and denomination increase was not sustainable – and after 20 short years – the Pengo was replaced by the Forint.

Incentive – [countable, uncountable] incentive (for/to somebody/something) (to do something)something that encourages you to do something

Sentence –There is no incentive for people to save fuel.

Inflation – a general rise in the prices of services and goods in a particular country, resulting in a fall in the value of money; the rate at which this happens

Sentence –The rate of inflation has now reached double figures.

Insider trading – the crime of buying or selling shares in a company with the help of information known only by those connected with the business, before this information is available to everybody

Sentence –The stockbroker was accused of insider trading because his brother worked in a company that he invested in.

Instability – the quality of a situation in which things are likely to change or fail suddenly

Sentence –The country has political and economic instability.

Interest – [uncountable] interest (on something) (finance)the extra money that you pay back when you borrow money or that you receive when you invest money

Sentence –The money was repaid with interest.

Investment – [uncountable] the act of investing money in something

Sentence –Expansion was made possible by the investment of government money.

Interventionism – the policy or practice of a government influencing the economy of its own country, or of becoming involved in the affairs of other countries

Sentence –This interventionist approach stands uneasily alongside the free-market rationale

Laissez-faire – the policy of allowing private businesses to develop without government control

Sentence –The government believed in Laissez-Faire economics, where humans affected the markets due to their selfish interests.

Launder – launder something to move money that has been obtained illegally into foreign bank accounts or legal businesses so that it is difficult for people to know where the money came from

Sentence –Most of the drugs money was laundered through Swiss bank accounts.

Leveraged buyout – a business arrangement in which someone buys a company by borrowing money based on the value of the company that is being bought

Sentence –Manchester United was bought using a leveraged buyout, the investors used the stadium and high revenues to finance the deal.