Vocabulary ECONOMICS and FINANCE (Lesson 21) #Finance

today we’re going to look at economy and Finance vocabulary so let’s have a look first of all in this corner um house prices or Interest

Rates or the value of your currency whether it’s rubles or Pounds or dollars um now these three things they can obviously go down yeah they can go down or they can go up so if house prices go down we can also say a number of other Expressions we can say house prices drop house prices

fall we could say Interest Rates plummeted now plummet means fall very very quickly I want to make that clear that plummet is a very sharp decrease in the price of something so when it plummets it drops when you jump out of an airplane your body will plummet to the ground if you

don’t have a parachute and so that’s the kind of idea behind plummet fall very quickly um you can also say house prices have slumped or you can say there has been a slump in house prices you can also say A Drop in house prices a fall in house prices but you can’t say a plummet in

house prices okay so that’s a little bit different it’s a verb you don’t use it as a noun but these other ones you do um and you can also say house prices have collapsed um we don’t generally say a collapse in house prices but perhaps in some areas you may find find it but I

think we usually use this one as a verb too and of course Interest Rates can collapse and the value of your currency can collapse as well so they’re all about going down now I wrote three here for going up um Interest Rates can rise the value of your currency

can increase and house prices can Skyrocket and Skyrocket would be the opposite of plummet in that it means go up very very very quickly um okay so use those for describing Trends in prices there’s more information about this on a CashNews.co which I made for IELTS IELTS writing so if you can

find that CashNews.co just type in I Els writing Mr Skype lessons I think you’ll find it I hope so and you’ll get more vocabulary for this uh description um coming now on to the word Debt you can cancel your Debts you can pay off your

Debts you can incur Debts and you can alleviate Debts and these words here are adjectives you can incur crippling Debts crippling means terrible um awful Debts so they’re so bad these Debts

that they you now remember a is um it’s perhaps not politically correct now but it was a word for an invalid uh someone who was disabled was crippled maybe they crippled their leg or they crippled their arm and so crippling Debt means you’re unable to function um

it’s incapacitating Debt it stops you from functioning uh normally so that’s very severe form of Debt severe Debt crippling Debt mounting Debts means increasing Debts and substantial

means significant Debts big Debts but mounting means they keep adding up they keep going up so if you cancel your Debts you wipe them out uh um well you obviously don’t choose to cancel your Debt maybe the bank decides to

wipe out your Debts because you declare yourself bankrupt yeah perhaps you declare yourself bankrupt it’s another good word to remember for this topic actually bankrupt and remember you go bankrupt if you go bankrupt maybe the bank will decide to wipe out your

Debts because you’re unable to pay them um okay maybe you manage to pay off your Debts maybe you settle your crippling Debts and then you breathe a sign of relief um but yeah pay off your Debts incur just means get

Debts go into Debt is another expression go into Debt yeah just like you go into recession you go into Debt and so if you incur Debts when I was a student I incurred Debts I ran up uh some

Debts some mounting Debts which was my student Loan so there is a phrasal verb you can use here you run up Debts which just means get Debts incur Debts and so a lot of us run up

Debts um while we’re at University but many of us run up Debts also if we go into business uh for starting Capital that kind of thing um you can also alleviate Debts this is where you help someone ease their

Debts you help to make it easier for them to pay maybe you lend them some money or maybe you alleviate someone’s Debt from by if you’re the bank reducing the amount that person has to pay maybe you alleviate the Debt by accepting a much

lower amount so that would always also be Debt alleviation if a country is in Debt other countries may wish to help and they may choose to alleviate the country’s Debt um okay coming over here um you can raise Interest Rates

or you can lower interest rate rates which means put them down or put them up so it’s not go down and go up it’s put up and put down remember raise is different from Rise there they are different verbs rise is when you know you say the sea level is rising but you you raise is when

there’s an agent involved yeah raise is when you say I don’t know um the um maybe the weather is causing uh is is M making sea levels rise so it’s raising the sea level yeah it’s not a very good example let me think of a different example maybe your boss raises your salary

that means your salary Rises your salary goes up your salary Rises but your boss raises your salary okay but he could also lower your salary and you can lower Interest Rates now I’ve written base interest rate because base interest rate means the Central Bank interest rate

and so it’s very important in economics what the base interest rate is set at if the Central Bank sets the interest rate very low like at the moment it means money is very cheap money is very easy to borrow um and so a lot of money has to be printed um you can also go into recession and come

out of recession recession is a period of difficulty for the economy it’s when the economy shrinks and that’s a good word to remember for the economy the economy can shrink get smaller yeah your clothes shrink if you put them in the wash sometimes hopefully not but the economy can

shrink and and then you’re in a severe recession hopefully you come out of the severe recession and to do so you may need to introduce some new laws you may need to bring in some fiscal measures fiscal really is similar to financial as an adjective and here we just mean introduce some new

laws relating to the economy so you might wish to boost economic growth you may bring in new measures to boost economic growth you may bring in these measures to curb which means limit remember the curb limits the side of the road and so curb means limit to curb rampant Inflation

rampant collocates well with Inflation and it means out of control Inflation it means when it by the way Inflation is when house prices oh sorry it’s when prices Skyrocket this is Inflation when the price of everything

skyrockets and so if you wish to limit prices and make sure they don’t go up too much you want to the curb Inflation the opposite would be deflation which is when prices plummet um so you may bring in new fiscal measures to prevent deflation maybe you decide to raise the base

Interest Rates to prevent deflation okay that would probably be one fiscal measure you could introduce you could bring in okay um you may decide to impose Taxes you can also say Levy Taxes um where that’s Income

Taxes or something else that would be obviously the government’s decision or the um the uh Ministry of Finance of Economics um so you may want to allocate funds or

allocate resources from the budget to certain areas allocate means push you know put certain funds or resources into certain areas so you may want to allocate funds to deal with abject poverty in certain areas of the country Maybe maybe there’s really bad poverty abject means really severe

poverty um you might want to deal with that poverty by allocating funds to that area and spending some money in that area the problem may be different though the problem may be people not declaring their earnings there may be a big black economy in the country and um this would be because people

are not declaring their earnings this is a form of tax evasion uh if you if you don’t declare what you earn then you’re trying to avoid tax and this is called tax evasion um you may decide to impose austerity measures which is what we hear a lot about in the newspapers at the moment

imposing austerity measures simply means um trying to cut down on your on the amount of money you spend um so if you spend perhaps 2 million a year on defense and you impose austerity measures on the defense industry you spend less on that industry um so austerity is always spending Less in some

kind of way and usually they impose austerity measures on public services um this is usually the first thing to uh be um reduced the amount of money can be reduced okay uh lastly phrasal verbs almost forgot them um turnover has a couple of meanings and here it’s really a noun I think we

usually use it for Revenue as a noun um it if you talk about the company’s turnover then it means their total Revenue in other words total sales however it doesn’t have to mean that because turnover has at least two meanings probably more it can also

mean the rate at which you need to employ new staff staff turnover will always be uh referring to this how quickly you you need to replace your new staff so if you have a very high staff turnover that means people leave your company very quickly maybe after only a few months or a year and you need

to work out how to retain your staff how how to encourage staff loyalty okay another word which is very common nowadays bailout um bailout is when uh it’s used now very often when um for example the government bails out a bank it means the government gives the bank um money of a

Loan or something like this in order to save that Institution so a bailout is financial support um in order to save you from going bankrupt basically um so countries can get bailouts if they’re particularly if they’ve gone into um severe Debt they may

need to ask the European Union or the United Nations or International Bank whatever for a bailout which would be a Loan don’t forget a Loan is some form of Credit um now here are some other phrasal verbs which a lot of these are on my phrasal

verbs with money CashNews.co please check that CashNews.co for more phrasal verbs with money but you can cough up money now this means pay reluctantly you cough up money when you don’t want to pay it yeah um and so maybe somebody owes you some money maybe somebody one of your friends owes

you20 and they’ve been trying to avoid you and finally you see them and you say come on cough up that 20 it means pay up yeah pay up would be another one pay up pay me pay up that2 yeah cough up and it’s related obviously to it kind of makes me think of a person coughing up the money

out of their throat maybe that’ll be easier to remember now you’ve also got Fork outon which is also pay reluctantly when you Fork out on an expensive car means you buy some expensive car and it wasn’t um very nice for you to let to part with that money CU it was a lot of money so

you Fork out on a new car um Splash out so this one sounds like pay and it sounds like you didn’t enjoy paying for it this one is pay but you did enjoy paying for it you Splash out on a new holiday and you know in both situations you’re spending a lot of money but Fork out on sounds

like you didn’t like spending that money although you may want the holiday you didn’t enjoy you know being separated from your cash so a greedy person will usually Fork out on something but a generous person or an extravagant person person will usually Splash out on a new swimming pool

or a new car or a new holiday okay the last one which we’ll do it means cost yeah I can’t make it any clearer this one means cost so if I say how much did you on new T TV whoops how much did your new TV or your new computer set you back it means how much did you pay for it how much did

it cost but we say set you back how much did it set you back um and you can say it’s set me back £500 it set me back £50 okay I hope that’s all clear that’s um quite a lot of new vocab so please ask me any questions under the CashNews.co and I hope to see you all soon thanks for

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