Business, Money and Investment IELTS

Question 1

The act of putting money, effort, or resources into an enterprise to gain profit.

Answer 1

Investment

Example sentence: “Diversifying your investments is crucial for minimizing risks in the volatile market.”

Question 2

Financial gain, especially the difference between the amount earned and the amount spent.

Answer 2

Profit

Example sentence: “The company’s new strategy resulted in significant profits this quarter.”

Question 3

A newly established business or company designed to rapidly grow.

Answer 3

Startup

Example sentence: “Many entrepreneurs dream of launching a successful startup.”

Question 4

Financial assets or resources used in the production of goods and services.

Answer 4

Capital

Example sentence: “Securing enough capital is a major challenge for small businesses.”

Question 5

Producing a great deal of profit.

Answer 5

Lucrative:

Example sentence: “Real estate has proven to be a lucrative investment over the years.”

Question 6

Capable of being maintained over the long term without harming the environment or depleting resources.

Answer 6

Sustainable

Example sentence: “Investing in sustainable technologies is not only ethical but also financially wise.”

Question 7

Involving the possibility of financial loss or failure.

Answer 7

Risky

Example sentence: “Cryptocurrency investments can be highly risky due to market volatility.”

Question 8

Varied in terms of investments to spread risk.

Answer 8

Diversified

Example sentence: “A diversified portfolio helps protect against fluctuations in specific markets.”

Question 9

To distribute resources or funds for a particular purpose.

Answer 9

Allocate

Example sentence: “It’s essential to carefully allocate your budget to meet both short-term and long-term goals.”

Question 10

To obtain a reward or benefit, especially as a result of effort.

Answer 10

Reap:

Example sentence: “Investors patiently wait to reap the benefits of a well-thought-out strategy.”

Question 11

To convert assets into cash.

Answer 11

Liquidate

Example sentence: “During economic downturns, businesses may need to liquidate certain assets to survive.”

Question 12

To promote the growth or development of something.

Answer 12

Foster:

Example sentence: “The government aims to foster innovation by providing grants to new businesses.”

Question 13

In a way that is carefully planned to achieve a particular goal.

Answer 13

Strategically

Example sentence: “Investing strategically in emerging markets can yield significant returns.”

Question 14

Regularly and without variation.

Answer 14

Consistently

Example sentence: “Successful investors consistently monitor market trends and adjust their portfolios accordingly.”

Question 15

In a way that shows a careful consideration of possible risks.

Answer 15

Cautiously

Example sentence: “It’s advisable to approach high-risk investments cautiously.”

Question 16

With persistent effort and attention to detail.

Answer 16

Diligently

Example sentence: “Entrepreneurs who diligently manage their finances are more likely to succeed.”

Question 17

To take advantage of an opportunity, especially for financial gain.

Answer 17

Cash in on:

Example sentence: “Some savvy investors know how to cash in on market fluctuations.”

Question 18

To delay or postpone.

Answer 18

Hold off:

Example sentence: “The company decided to hold off on expanding until market conditions improved.”

Question 19

To generate income or profits.

Answer 19

Bring in:

Example sentence: “The new product launch is expected to bring in substantial revenue.”

Question 20

To reduce in size, extent, or quantity.

Answer 20

Scale back:

Example sentence: “During economic uncertainty, businesses may need to scale back their operations.”

Question 21

Having a lot of money; being very wealthy.

Answer 21

Rolling in dough: Informal

Example sentence: “Ever since she started her own business, she’s been rolling in dough.”

Question 22

To face a difficult situation with courage.

Answer 22

Bite the bullet:

Example sentence: “During tough economic times, entrepreneurs often have to bite the bullet and make tough decisions.”

Question 23

To spend more money than planned or than is reasonable.

Answer 23

Break the bank:

Example sentence: “Buying the latest technology can sometimes break the bank if you’re not careful.”

Question 24

Taking shortcuts or reducing costs, often in a way that compromises quality.

Answer 24

Cutting corners:

Example sentence: “Cutting corners in business practices can lead to long-term problems.”

Question 25

To risk everything on a single venture.

Answer 25

Put all your eggs in one basket:

Example sentence: “Diversification is crucial; you never want to put all your eggs in one basket when investing.”

Question 26

To make a financial gain.

Answer 26

Turn a profit:

Example sentence: “The company struggled in its early years but eventually turned a profit.”

Question 27

To achieve a big success or gain a windfall.

Answer 27

Hit the jackpot:

Example sentence: “Investors who bought early hit the jackpot when the company went public.”

Question 28

To handle a situation in a flexible manner without a definite plan.

Answer 28

Play it by ear:

Example sentence: “In the dynamic world of business, sometimes you have to play it by ear and adapt quickly.”

Question 29

To negotiate and reach an agreement.

Answer 29

Cut a deal:

Example sentence: “The two companies decided to cut a deal to collaborate on the new project.”

Question 30

To successfully obtain financial support

Answer 30

Secure funding:

Example sentence: “Startups often face challenges in securing funding for their innovative ideas.”

Question 31

To engage in an action with an uncertain outcome.

Answer 31

Take a risk:

Example sentence: “Entrepreneurs must be willing to take calculated risks to achieve success.”

Question 32

To recover from a setback or decline.

Answer 32

Make a comeback:

Example sentence: “After facing financial challenges, the company managed to make a comeback with a new product.”

Question 33

A sum of money paid regularly by a company to its shareholders out of its profits.

Answer 33

Dividend

Example sentence: “Investors often appreciate stocks that not only appreciate in value but also provide regular dividends.”

Question 34

Something pledged as security for a loan, to be forfeited in the event of a default.

Answer 34

Collateral

Example sentence: “When applying for a business loan, the entrepreneur may need to provide collateral such as real estate or equipment.”

Question 35

Introducing new ideas or methods; creative and original.

Answer 35

Innovative

Example sentence: “Innovative companies that embrace technological advancements tend to stay ahead in the competitive market.”

Question 36

Using borrowed capital for investment with the expectation that the profits made will be greater than the interest payable.

Answer 36

Leveraged

Example sentence: “Leveraged investments can amplify returns, but they also come with increased risk.”

Question 37

To estimate or predict future trends or outcomes.

Answer 37

Forecast

Example sentence: “Economists carefully analyze data to forecast economic growth and market conditions.”

Question 38

To convert an asset or any object into money or legal tender.

Answer 38

Monetize

Example sentence: “Content creators often seek ways to monetize their online platforms through ads and sponsorships.”

Question 39

In a way that is assertive, proactive, or characterized by bold action.

Answer 39

Aggressively

Example sentence: “Some investors choose to pursue opportunities aggressively to maximize their returns.”

Question 40

Without interruption; constantly.

Answer 40

Incessantly

Example sentence: “In the world of finance, information flows incessantly, requiring investors to stay well-informed.”

Question 41

To provide support or evidence for a decision or claim.

Answer 41

Back up:

Example sentence: “It’s crucial to back up financial projections with solid data when presenting to potential investors.”

Question 42

To convert assets into cash, especially to realize gains.

Answer 42

Cash out:

Example sentence: “Some entrepreneurs choose to cash out their investments after achieving a specific business milestone.”

Question 43

To give up; to surrender or quit.

Answer 43

Throw in the towel:

Example sentence: “After facing continuous losses, some traders decide to throw in the towel and exit the market.”

Question 44

To seek information or advice from someone who is knowledgeable about a particular subject.

Answer 44

Pick someone’s brain:

Example sentence: “Entrepreneurs often meet with experienced mentors to pick their brains about business strategies.”

Question 45

To stop further losses in a losing investment or situation.

Answer 45

Cut one’s losses:

Example sentence: “When the market takes a downturn, it’s sometimes wise to cut your losses and move on.”

Question 46

Facing the same challenges or in a similar situation.

Answer 46

All in the same boat:

Example sentence: “During an economic recession, businesses are all in the same boat, trying to survive and adapt.”

Question 47

To reach an agreement through negotiation.

Answer 47

Strike a deal:

Example sentence: “Both parties were able to strike a deal that benefited their respective interests.”

Question 48

To secure funds for a business or project.

Answer 48

Raise capital:

Example sentence: “Startups often rely on various methods to raise capital, including crowdfunding and venture capital.”

Question 49

Investment made by a foreign entity (individual or corporation) into the economy of another country, often with the goal of establishing business operations or acquiring assets.

Answer 49

Foreign Direct Investment (FDI):

Example sentence: “Foreign Direct Investment plays a crucial role in boosting economic development as it brings in capital, technology, and expertise from external sources. For instance, China has attracted substantial FDI, contributing significantly to its rapid industrialization.”

Question 50

Collaborative arrangements between government entities and private sector companies for the purpose of financing, designing, implementing, and operating projects or services that were traditionally provided by the public sector.

Answer 50

Public-Private Partnerships (PPPs):

Example sentence: “Public-Private Partnerships have become increasingly popular in infrastructure development, such as building highways or public transportation systems. For instance, the government may partner with a private construction company to fund and build a new airport.”

Question 51

Economic development that meets the needs of the present without compromising the ability of future generations to meet their own needs. It often involves balancing economic growth, social inclusion, and environmental sustainability.

Answer 51

Sustainable Development:

Example sentence: “Countries worldwide are recognizing the importance of integrating sustainable development practices into their economic policies. For example, Scandinavian nations are known for their commitment to sustainable development, with policies that prioritize renewable energy and environmental conservation.”

Question 52

The ethical framework and voluntary initiatives that businesses adopt to contribute to the well-being of society. This includes environmental sustainability, ethical labor practices, and community development.

Answer 52

Corporate Social Responsibility (CSR):

Example sentence: “Corporate Social Responsibility has become a key consideration for companies aiming to build a positive public image. Many multinational corporations allocate funds for CSR activities, such as supporting local education initiatives or environmental conservation projects.”

Question 53

The rate at which the general level of prices for goods and services rises, eroding purchasing power. In the context of investments, inflation can affect the real value of returns.

Answer 53

Inflation and its Impact on Investments:

Example sentence: “Understanding the impact of inflation on investments is crucial for investors. For instance, during periods of high inflation, assets like real estate may serve as a hedge as their value tends to appreciate, unlike cash holdings.”

Question 54

Digital or virtual currencies that use cryptography for security and operate on decentralized networks. Blockchain is the underlying technology that enables the secure and transparent recording of transactions.

Answer 54

Cryptocurrency and Blockchain Technology:

Example sentence: “Cryptocurrency, such as Bitcoin, has emerged as a disruptive force in the financial landscape. The application of blockchain technology goes beyond cryptocurrencies, showing promise in areas like supply chain management and secure digital identity verification.”

Question 55

Digital or virtual currencies that use cryptography for security and operate on decentralized networks.

Answer 55

Cryptocurrency

Example sentence: “Cryptocurrencies, such as Bitcoin, have emerged as a disruptive force in the financial landscape. The decentralized nature of these digital currencies means that they are not controlled by any central authority, providing users with greater financial autonomy and security.”

Question 56

The distribution of power, authority, or control across multiple nodes or entities, reducing reliance on a single central authority.

Answer 56

Decentralization

Example sentence: “The key strength of blockchain lies in its decentralization, as it eliminates the need for a central governing body. This decentralization not only enhances security but also promotes trust in transactions.”

Question 57

The quality of being economical with resources, avoiding unnecessary expenditures.

Answer 57

Frugality

Example sentence: “Practicing frugality by cooking at home instead of dining out can lead to significant savings.”

Question 58

Making unplanned purchases without careful consideration.

Answer 58

Impulse buying:

Example sentence: “Impulse buying can undermine efforts to stick to a budget, as individuals may succumb to the allure of immediate gratification.”

Question 59

Showing a careful use of money; economical.

Answer 59

Thrifty

Example sentence: “Being thrifty involves seeking discounts and making informed choices to maximize the value of each dollar spent.”

Question 60

The amount of money a person has left over after taxes, which can be spent or saved.

Answer 60

Disposable income:

Example sentence: “Understanding your disposable income is crucial for effective financial planning.”

Question 61

A strict economic policy of reducing government spending and increasing taxes.

Answer 61

Austerity:

Example sentence: “During economic downturns, governments may implement austerity measures to stabilize public finances.”

Question 62

Spending only what one can afford based on income.

Answer 62

Living within means:

Example sentence: “Living within your means requires careful budgeting and avoiding unnecessary debt.”

Question 63

A large amount of money that is received unexpectedly or as a surprise.

Answer 63

Windfall

Example sentence: “Receiving a bonus at work can be a financial windfall that allows for extra savings or indulgences.”

Question 64

The complete offering of salary, benefits, and other perks provided by an employer.

Answer 64

Compensation package:

Example sentence: “When considering a job offer, it’s essential to evaluate the entire compensation package, including health benefits and retirement plans.”

Question 65

Giving a high priority to the acquisition of material possessions.

Answer 65

Materialistic

Example sentence: “Some people find fulfillment in experiences rather than materialistic pursuits.”

Question 66

Reluctant or hesitant to take risks, especially with investments.

Answer 66

Risk-averse

Example sentence: “Risk-averse individuals may prefer conservative investment strategies to preserve their capital.”

Question 68

The ability to understand and use various financial skills, including personal financial management, budgeting, and investing.

Answer 68

Financial literacy:

Example sentence: “Improving financial literacy is essential for making informed decisions about money and investments.”

Question 69

The amount of money needed to sustain a certain standard of living, including expenses like housing, food, and transportation.

Answer 69

Cost of living:

Example sentence: “The cost of living varies significantly from one city to another, influencing salary expectations for professionals.”

Question 70

The process of discussing and reaching an agreement on the compensation for a job position.

Answer 70

Salary negotiation:

Example sentence: “Effective salary negotiation is a skill that can significantly impact one’s overall financial well-being.”

Question 71

Additional payments or rewards provided by employers, often based on performance or meeting specific targets.

Answer 71

Bonuses and incentives:

Example sentence: “Companies may offer bonuses and incentives to motivate employees and recognize exceptional contributions.”

Question 72

The ability to meet all financial needs without relying on external support.

Answer 72

Financial independence:

Example sentence: “Achieving financial independence is a common goal, as it allows individuals to make choices based on personal values rather than financial constraints.”

Question 73

Spending money primarily for pleasure and immediate gratification.

Answer 73

Hedonistic spending:

Example sentence: “Hedonistic spending can provide temporary joy but may have long-term consequences on financial stability.”

Question 74

A cautious approach to economic and financial policies, favoring stability and gradual changes.

Answer 74

Economic conservatism:

Example sentence: “Countries may adopt economic conservatism during times of uncertainty to mitigate risks and maintain fiscal responsibility.”

Question 75

The process of acquiring and increasing financial assets and resources over time.

Answer 75

Wealth accumulation:

Example sentence: “Wealth accumulation involves strategic planning, disciplined saving, and wise investment choices.”

Question 76

Money owed to a credit card company due to the use of credit cards for purchases.

Answer 76

Credit card debt:

Example sentence: “Managing and paying off credit card debt is a common financial challenge for many individuals.”

Question 77

Spending money extravagantly or in a way that exceeds normal limits.

Answer 77

Splurging

Example sentence: “Occasionally, people indulge in a bit of splurging, treating themselves to something special.”

Question 78

A sum of money saved for the future, typically for emergencies or retirement

Answer 78

Nest egg:

Example sentence: “Building a nest egg requires consistent saving and wise investment decisions.”

Question 79

Cultural approaches related to passing down wealth, assets, or financial knowledge through generations.

Answer 79

Inheritance Traditions:

Example sentence: “Inheritance traditions vary across cultures, influencing how families pass on financial legacies and responsibilities.”

Question 80

To make the best use of a situation or resource to achieve the maximum possible result.

Answer 80

Maximize

Example sentence: “Investors aim to maximize their returns by diversifying their portfolios.”

Question 81

To redistribute or realign resources, funds, or investments to different areas or purposes.

Answer 81

Reallocate

Example sentence: “In response to changing market conditions, the company decided to reallocate its budget to focus on innovation.”

Question 82

To put money back into an investment or business rather than withdrawing it.

Answer 82

Reinvest:

Example sentence: “Successful entrepreneurs often choose to reinvest profits to fuel the growth of their ventures.”

Question 83

To achieve better results or returns compared to others in a similar category.

Answer 83

Outperform:

Example sentence: “Certain stocks have consistently outperformed the market, attracting the attention of savvy investors.”

Question 84

To reduce the amount or extent of something, especially expenses.

Answer 84

Cut back on:

Example sentence: “During tough economic times, individuals often need to cut back on non-essential spending.”

Question 85

To convert an investment into cash.

Answer 85

Cash out on:

Example sentence: “Investors may choose to cash out on profitable positions during a market upswing.”

Question 86

To set aside money gradually over time for a specific purpose or purchase.

Answer 86

Save up for:

Example sentence: “They are saving up for a down payment on a house.”

Question 87

To spend a large amount of money on something special or luxurious.

Answer 87

Splash out on:

Example sentence: “After receiving a bonus, she decided to splash out on a dream vacation.”

Question 88

To handle or oversee the financial aspects of one’s life or a business.

Answer 88

Manage finances:

Example sentence: “It’s crucial to learn how to effectively manage finances to achieve long-term financial goals.”

Question 89

To regularly observe and assess the performance of financial assets.

Answer 89

Monitor investments:

Example sentence: “Investors should consistently monitor investments to stay informed about market trends.”

Question 90

To successfully traverse or manage difficulties or uncertainties in the economic environment.

Answer 90

Navigate economic challenges:

Example sentence: “Business leaders must navigate economic challenges with resilience and adaptability.”

Question 91

To reduce or minimize the impact of potential risks or uncertainties.

Answer 91

Mitigate risks:

Example sentence: “Diversification is a strategy to mitigate risks and protect investments from market fluctuations.”

Question 92

To spend or pay a significant amount of money, especially reluctantly.

Answer 92

Shell out money:

Example sentence: “Consumers often have to shell out money for unexpected expenses.”

Question 93

To allocate or reserve money for a specific purpose, often for future use.

Answer 93

Set aside funds:

Example sentence: “It’s wise to set aside funds for emergencies in a separate savings account.”

Question 94

To take advantage of favorable circumstances for financial gain.

Answer 94

Cash in on opportunities:

Example sentence: “Entrepreneurs who are quick to cash in on opportunities can gain a competitive advantage.”

Question 95

To officially acknowledge that a debt is unlikely to be recovered and remove it from the accounting records.

Answer 95

Write off debt:

Example sentence: “Individuals facing financial challenges may negotiate with creditors to write off part of their debt.”

Question 96

Acting with careful consideration and good judgment, especially in financial matters.

Answer 96

Prudent:

Example sentence: “Prudent individuals prioritize savings and make thoughtful investment decisions.”

Question 97

Lacking restraint in spending money, often on luxurious or unnecessary items.

Answer 97

Extravagant:

Example sentence: “Some people enjoy living an extravagant lifestyle, indulging in high-end purchases.”

Question 98

Possessing knowledge and awareness of financial matters, including investments and budgeting.

Answer 98

Financially savvy:

Example sentence: “Financially savvy individuals tend to make informed decisions that lead to long-term financial success.”

Question 99

Characterized by a strict and simple lifestyle, often with a focus on minimalism and frugality.

Answer 99

Austere

Example sentence: “During challenging economic times, some individuals adopt an austere approach to their finances.”

Question 100

A social and economic order that encourages the acquisition of goods and services in ever-increasing amounts.

Answer 100

Consumerism

Example sentence: “Consumerism can lead to a culture of constant spending and materialism.”

Question 101

A person or entity that owes money to another party.

Answer 101

Debtor

Example sentence: “Managing debt responsibly is crucial for debtors to maintain financial health.”

Question 102

A way of thinking that emphasizes strategic and informed decision-making in financial investments.

Answer 102

Investor mindset:

Example sentence: “Developing an investor mindset involves a long-term perspective and a focus on portfolio growth.”

Question 103

The activity of setting up and managing businesses, typically with an emphasis on taking financial risks for potential rewards

Answer 103

Entrepreneurship:
Example sentence: “Entrepreneurship requires a combination of innovation, resilience, and financial acumen.”