Money and Finance
1.Profit is money you gain from selling something, which is more than the
money you paid for it. Loss is money you have spent and not got back.
2.Extravagant describes somebody who spends a lot of money. Frugal or
economical describes somebody who is careful with money.
3.A current account is a bank account from which you can take money at any
time. A deposit account is a bank account which pays you interest if you leave
money in it for some time (we can also use the expression savings account or
4.A loan is money which you borrow to buy something. A mortgage is a
special kind of loan used to buy a house over a period of time.
5.To deposit money is to put money into a bank account. To withdraw money
is to take money out of a bank account.
6.A wage and a salary are money you receive for doing a job, but wage is
usually paid daily or weekly and a salary is usually paid monthly.
7.If you are broke, you have no money. It is an informal expression. If you
are bankrupt, you are not able to pay back money you have borrowed. It is a very
serious financial situation for somebody to be in.
8.In the UK, shares are one of the many equal parts into which a company’s
capital is divided. People who buy them are called shareholders. Stocks are
shares which are issued by the government. Dividends are parts of a company’s
profit shared out among the shareholders.
9.Income tax is a tax on money earned as wages or salary. Excise duty is a
tax on certain goods produced in a country, such as cigarettes or alcohol.
10.To credit somebody’s bank account is to put money into the account. To
debit somebody’s bank account is to take money out. In the UK, many people pay
for bills, etc… using a system called “direct debit”, where money is taken
directly from their account by the company providing the goods or service.
11.Traditionally a bank is a business organization which keeps money for
customers and pays it out on demand or lends them money, and a building society
is more usually associated with saving money or lending people money to buy
12.A discount is the percentage by which a full price is reduced to a buyer
by the seller. A refund is money paid back when, for example, returning
something to a shop.
13.A bargain is something bought more cheaply than usual. Something which
is overpriced is too expensive. Something which is exorbitant costs much more
than its true value.
14.A worthless object is something which has no value. A priceless object
is an extremely valuable object.
15.If you save money, you put it to one side so that you can use it later.
If you invest money, you put it into property, shares, etc…so that it will
increase in value.
16.Inflation is a state of economy where prices and wages increase.
Deflation is a reduction of economic activity.
17.Income is the money you receive. Expenditure is the money you spend.
18.If you lend money, you let someone use your money for a certain period
of time. If you borrow money from someone, you take money for a time, usually