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Video Vocab 002: Economy 1

Regulate verb [T] (Translation: )

Currency noun [C] (Translation: )
Interest Rate noun [C] (Translation: )
Exchange Rate noun [C] (Translation: )
Monetary Policy noun [C] (Translation: )
Central Bank noun [C] (Translation: )
Fluctuate verb [I] (Translation: )
Speculate verb [I] (Translation: )
Inflation noun [U] (Translation: )
Basis Point noun [C] (Translation: )

Definitions

1. Regulate verb [T]

reg·u·la·te |ˈregyәˌlāt|

Definition:
To control or supervise something by means of laws or rules.

Examples:
Governments can regulate policy by creating new laws.

The EU has made new regulations regarding imports from China. (here
regulate is used as a noun)

2. Currency noun [C]

cur·ren·cy |ˈkәrәnsē; ˈkә-rәnsē|

Definition:
a system of money, or the bills and coins themselves, used in a particular
country.

Examples:
The dollar is the currency of the USA.

The value of a currency is determined by the exchange rate.

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 Video Vocab 002: Economy 1

3. Interest Rate noun [C]

in🞄ter🞄est rate |ˈint(ә)rist| |rāt|

Definition:
The cost of borrowing money over a period of time or the price that lenders charge
borrowers for the use of the lenders' money.

Examples:
Small businesses usually have to pay higher interest rates on their loans.

House prices tend to fall when interest rates rise because it becomes more
expensive to borrow money.

4. Exchange Rate noun [C]

ex🞄change rate |iksˈ ch ānj| |rāt|

Definition:
the value of one currency against the currency of another country.

Examples:
If the euro-dollar exchange rate remains at its current level, US exporters
could lose $5 billion in business.

China is under pressure to make its exchange rate more flexible.

5. Central Bank noun [C]

cen🞄tral bank |ˈsentrəl| |ba ng k|

Definition:
a national bank that provides financial and banking services for its country's
government and commercial banking system.

Examples:
Sweden’s central bank regulates their government's monetary policy and issues
currency.

The European Central Bank raised interests rates by a 1/4 percent last month.

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 Video Vocab 002: Economy 1

6. Monetary Policy noun [C]

mon🞄e🞄tar🞄y policy |ˈmänәˌterēˈ| |ˈpälәsē|

Definition:
The way a central bank controls the amount of money in the economy at a
particular time, for example by changing interest rates.

Examples:
Unless the Bank of Japan relaxes monetary policy and makes borrowing
easier, the stock market is unlikely to improve.

The Bank of Canada carries out monetary policy mainly through changes to the
interest rate.

7. Fluctuate verb [I]

fluc🞄tu🞄ate |ˈflәk ch oōˌāt|

Definition:
To change frequently and erratically.

Examples:
Trade with other countries tends to fluctuate from year to year.

The Euro-Dollar exchange rate fluctuates according to the condition of the

economy.

8. Speculate verb [I]

spec🞄u🞄late |spěk'yә-lāt'|

Definition:
To buy goods, shares, property, etc. in the hope that their value will increase so
that they can be sold for a profit.

Examples:
Many individuals are now speculating on the Asian stock exchanges

Derivative:

spec🞄u🞄la🞄tion noun [U] |spěk'yә-lā'shәn|

For example:
Speculation by investors has helped to increase the price of oil.

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 Video Vocab 002: Economy 1

9. Inflation noun [U]

in·fla·tion |ĭn-flā'shәn|

Definition:
A general increase in the price of goods and services and a fall in the relative value
of money.

For example:
Fears of inflation have led the Federal Reserve to raise interest rates by a
quarter point.

Collocations:
We often talk about the rate of inflation or the inflation rate.

Definition:
The percentage increase in prices over a given time period.

For example:
The inflation rate in Brazil was around 7% last year.

10. Basis Point (often referred to as just “Points”) noun

ba·sis poi·nt |bā'sĭs point|

Definition:
A unit of measure used in the financial world to describe the percentage change in
the value or rate of a financial instrument. One basis point is equivalent to 0.01%
or 1/100th of a percent.

For example:
The Federal Reserve Board raised interest rates by 25 basis points to help
control inflation.

Bond yields rose 20 points from 7.45% to 7.65%.

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 Video Vocab 002: Economy 1

My Examples (Write a complete sentence for each word.)

1. Regulate:

2. Currency:

3. Interest Rate:

4. Exchange Rate:

5. Monetary Policy:

6. Central Bank:

7. Fluctuate:

8. Speculate:

9. Inflation:

10. Basis Point:

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