Finances English Vocabulary

Study Notes

Finances English Vocabulary

Assets: Items of economic value owned by a person or company. Examples include cash, property, investments.
Liabilities: Obligations or debts owed by a person or company. Examples include loans, mortgages, credit card balances.
Income: Money received, especially on a regular basis, for work or through investments. Can be gross (total) or net (after deductions).
Expenses: Costs incurred in the process of generating income or maintaining operations. Examples include rent, utilities, food.
Budget: A plan for managing income and expenses over a set period.
Profit: The financial gain resulting from a transaction or activity. Revenue minus expenses.
Loss: The financial disadvantage resulting from a transaction or activity. Expenses exceeding revenue.
Debt: Money owed to another party, often via a loan or credit.
Credit: The ability of a person or business to obtain funds or borrow money. Also, the history of payments made by an individual toward debts.
Savings: Money set aside for future use.
Investing: Putting money into something with the expectation of future financial gain.

Banking Terminology

Account: A record of transactions and balances kept on a financial ledger, belonging to an individual or entity.
Deposit: To place money into a bank account.
Withdrawal: To remove money from a bank account.
Balance: The current amount of money in an account.
Interest: A fee paid back to lenders or depositors in exchange for using their funds.
Loan: An amount of money a lender agrees to give to a borrower, with an agreed upon interest and repayment period.
Mortgage: A loan to buy real estate.
Credit Card: A payment card allowing the user to borrow money up to a credit limit.
Debit Card: A payment card deducting money directly from a checking account.
Bank Statement: A summary of all transactions recorded in an account over a certain period.
ATM (Automated Teller Machine): A machine allowing access to financial services without the need for a teller.
ACH (Automated Clearing House): A system for electronic funds transfers between banks.
FDIC (Federal Deposit Insurance Corporation): A U.S. government agency that insures deposits in banks.

Investment Terms

Stock: Ownership shares in a company.
Bond: A loan made to a government or corporation.
Mutual Fund: An investment that pools money from many investors to invest in a diversified portfolio of stocks, bonds, or other assets.
Index Fund: A type of mutual fund that tracks a specific market index, such as the S&P 500.
Diversification: Spreading investments across various assets to reduce risk.
Return on Investment (ROI): The gain or loss on an investment relative to the amount invested.
Risk Tolerance: An individual's willingness to accept potential losses while investing.
Market Capitalization: The total value of a company's outstanding shares.
Liquidity: How readily an asset can be converted into cash.
Yield: Measures the return on investment, commonly expressed annually.

Budgeting Vocabulary

Fixed Expenses: Costs that remain constant each month, like rent or mortgage payments.
Variable Expenses: Costs that fluctuate from month to month, such as groceries or entertainment.
Net Worth: The difference between total assets and total liabilities.
Savings Goals: Specific financial objectives, such as saving for a down payment or retirement.
Budget Allocation: The process of assigning funds to different expense categories within a budget.
Budget Surplus: When income exceeds expenses.
Budget Deficit: When expenses exceed income.
Budgeting Methods: Different approaches to managing income and expenses.
Financial Planning: The process of setting financial goals and developing strategies to achieve them.
Emergency Fund: Savings set aside to cover unexpected expenses.
Debt Repayment Plan: Steps to reducing existing debt.
Inflation: The rate of increase in prices over a period of time.

Description

Test your knowledge of key financial vocabulary with this quiz. Covering terms like assets, liabilities, income, and more, this quiz will help you understand essential concepts in finance. Perfect for students or anyone looking to enhance their financial literacy.