< V > TOEFL Vocabulary (20)

Financial Systems

1. allocate v. To give out different amounts for different purposes

The budget allocates $58 billion to the military and only about $2 billion to education.

Usage tips Things that can be allocated are things that can be “spent”—money, time, energy, etc.

Parts of speech allocation n

2. commodity n. A thing that can be bought and sold, such as grain, oil, or wood

Tulip bulbs were one of the most valuable commodities in seventeenth-century Holland.

Usage tips A thing is called a commodity only in the context of buying or selling it.

3. decline v. To decrease in power or amount

America’s railroads declined because the automobile dominated American life.

Parts of speech decline n

4. equity n. The value of one’s share in an investment

Barnard’s equity in the business was one-third, or about $350,000.

Usage tips In this meaning, equity is always singular and usually followed by an in phrase.

5. inflation n. A situation in which prices for many items rise quite fast

During the rapid inflation of the 1970s, prices for food and fuel sometimes rose 20 percent in a single month.

Parts of speech inflate v, inflationary adj

6. net adj. After all costs have been subtracted from an amount

My gross salary is around $35,000, but my net pay is closer to $29,000.

Parts of speech net v, net n

7. per capita adv. For each person

Research shows we’re likely to sell 15 light bulbs per capita per year in medium-sized cities.

Parts of speech per capita adj

8. regulate v. Control according to a set of rules

Trading on the New York Stock Exchange is regulated by officials of the exchange and by federal law.

Parts of speech regulation n, regulatory adj

9. subsidy n. Money given by a government or other organization to support an activity

Federal subsidies to grain farmers have helped them stay in business despite three years of bad weather.

Parts of speech subsidize v

10. tangible adj. Obviously real because it can be seen, touched, or otherwise observed

One tangible benefit of putting electrical cables underground is a clearer view of the sky.