TOEFL IBT – Economics

Vocabulary is promordial in order to improve your TOEFL score. Remember, Preparation is the key to succeed !

This vocabulary will be useful if you are taking a course in economics, for understanding the news in English, or for any number of English language exams you may take. Here we will look at the most commonly used words having to do with economics, along with their French translations.

appropriation

giving funds to government agencies to help them carry out their programs

The current appropriations bill would cut it another $10 million.

la dotation

bank

a business that keeps money for customers, makes loans, and provides other money-related services

The banks say they hope to complete the merger in January.

la banque

bankrupt

unable to pay debts

My father had to leave college when his father went bankrupt.

en faillite

bond

a certificate of a loan to a government or a business

As bond prices went up Tuesday, their yields went down.

l’obligation

budget

a plan of how much money a person, business, government, or organization is able to spend and how it will be spent

The state budget this year is $63.3 billion.

le budget

business cycle

alternating time periods of expanding and contracting economic activity

The company is aiming for 5 percent margins throughout the business cycle.

le cycle économique

capitalism

an economic system in which individuals, not the government, control the production and distribution of goods and services

It was the easiest money in capitalism, while it lasted.

le capitalisme

cash

bills and coins

That’s a lot of cash invested in one player.

les espèces

circulation

money that is available for use

American gold reserves could no longer support the dollars in circulation.

la circulation

consumer

someone who buys and uses goods and services

Some coffee retailers forecast that higher consumer prices might be unavoidable.

le consommateur/la consommatrice

credit

money loaned, usually for a fee, that must be paid back

The credit application for the expectant mother was approved quickly.

le crédit

currency

any kind of money that is used as a medium of exchange

They’ve tried six different currencies in the past decade.

la devise

debt

money owed when you or a government buys something or borrows money

The deal is backed by about $700 million in debt.

la dette

deposit

money put into a bank

This caused bank deposits to plummet and credit to dry up.

le dépôt

depression

a period of serious recession marked by high unemployment and a decline in business

The Great Depression was underway and Franklin Roosevelt was president.

la dépression

economics

the study of how people, businesses, and governments choose to use their limited resources

Many need some help understanding the economics of the fishing industry.

l’économie

employee

a person who works for another in exchange for pay

Companies with 1,000 or more employees may opt out.

l’employé(e)

employer

a person or company for whom other people work for pay

Employers are finally realizing there are costs to not helping employees.

l’employeur/l’employeuse

exchange rate

the value of one nation’s currency in comparison to another

Greater stability in exchange rates is absolutely necessary for sustained growth.

le taux de change

export

to send goods from one country to another

Sony exports 64 percent of its products, Matsushita 36 percent.

exporter

fiscal year

12-month planning cycle in business and government

Those estimates are for the fiscal year that ends June 30.

l’année fiscale

import

to bring goods into one country from another

The company plans to import 4,500 convertibles this year.

importer

income

the money a person gets from salary or wages, profits, interest, investments, and other sources

I ended up being owed a quarter of my yearly income.

le revenue

interest

the money a person pays to borrow money, or the money a bank pays depositors for using their money

The cycle reversed as interest rates fell and economies hit bottom.

l’intérêt

invest

to use money to earn interest or income, or in the hopes of making a profit

There are very few markets I would invest in right now.

investir

loan

a sum of money borrowed for a certain amount of time

Those loans generally carry lower interest rates.

l’emprunt

national debt

the amount of money that the government owes

It will be a great day when the national debt is eliminated.

la dette publique

principal

a sum of money in an account, not including interest earned; in a loan, the original amount of money borrowed

Inflation does erode the future value of principal and interest payments.

le capital

revenue

money brought in by a business

It was a chance for them to create some incremental revenue.

le chiffre d’affaires

savings

money that is put away to be used later

The money will go in the son’s savings account.

l’épargne

taxes

money that a government collects from people and businesses

I’m a working person who pays taxes.

les impôts

unemployment

the total number of people out of work, but wanting to work

They say we’re driving them to unemployment and bankruptcy.

le chômage

welfare

income paid by the government to people who need it to live

If I was on welfare, it would be paid for.

les allocations

withdraw

take money out of a bank account

Police never require an individual to withdraw money for an investigation.

retirer

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