Financial Systems
Definitions and Samples
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.
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Wealth and Social Class
Definitions and Samples
1. accumulate v. To build up a large amount of something
Over several generations, the Hardington family accumulated vast
wealth by buying and selling land.
Parts of speech accumulation n
2. affluence n. Wealth and the style of life that goes with it
Mohadzir grew up amid affluence, which poorly prepared him for
his grad student days in crowded apartments with no servants.
Parts of speech affluent adj
3. elite adj. Belonging to a special, honored group
Messner is an elite climber who recently ascended an 8,000-meter
mountain without extra oxygen.
Parts of speech elite n, elitist adj
4. impoverish v. To make a person or group poor
The collapse of the steel industry impoverished several counties in
eastern Ohio.
Parts of speech impoverishment n
5. luxury n. Extreme comfort, beyond what anyone needs
Automakers try to give their cars an image of luxury by including
extras like heated seats and satellite tracking systems.
Parts of speech luxuriate v, luxurious adj
6. nobility n. A group of socially prominent people with special titles
given by a king or queen, such as “duke”or “countess”
In the Middle Ages, the nobility supposedly followed a code that
required them to take care of poorer people who lived near their
estates.
Usage tips Nobility is used as a name for a group of distinguished
people; it can also mean “a highly dignified form of behavior.”
Parts of speech noble n, noble adj
7. prestige n. Honor and respect for being better than the average
The Grassleys enjoyed the prestige of living in the historic town, but
they did not feel at home there.
Parts of speech prestigious adj
8. privileged adj. Able to enjoy special advantages because of one’s
position (usually because of being born into a wealthy or powerful
family)
Despite his privileged position in one of America’s most powerful
families, the politician tried to portray himself as an ordinary
person.
Parts of speech privilege n
9. prosper v. To do very well in one’s business or personal life
Vargas prospered after finally patenting his new inventions.
Usage tips A person can prosper; so can a group, a company, or an
area.
Parts of speech prosperity n, prosperous adj
10. working class n. People with low-paying (often unskilled) jobs who
are not poor but who are not securely in the middle class
The Farrelly family, like other members of the working class, were
proud of their jobs and did not want any handouts from charity or
the government.
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Personal Property
Definitions and Samples
1. acquire v. To get something, usually something with special value or
meaning
Bart hoped to acquire the 1898 D Indian Head penny, which would
make his collection complete.
Usage tips Unlike get, acquire implies that a possession has special
value or meaning.
Parts of speech acquisition n, acquisitive adj
2. assess v. To estimate the value of something
The Barnes building was assessed at $1.3 million, but it can probably
sell for much more than that.
Parts of speech assessor n, assessment n
3. asset n. A possession that has positive value
Usage tips Some examples of assets are real estate, cash, and stock
shares.
4. hazardous adj. Dangerous
Parents have to be careful not to buy children’s clothes and toys
made of hazardous materials.
Parts of speech hazard n, hazardously adv
5. jointly adv. Together with one or more other parties
In most states, a husband and wife are assumed to own all their
possessions jointly.
Parts of speech join v, joint n
6. lease v. To rent something for a long time (several months or years)
Some drivers prefer to lease a car rather than buy one.
Parts of speech lease n, lessor n, lessee n
7. liability n. Legal responsibility for harming a person or property; a disadvantage
Before you go river rafting, you sign a document releasing the trip
leaders from liability in case of injury.
Henderson is just a liability to our work team, because he never finishes
anything on time.
Usage tips In its second meaning, liability is often followed by a to
phrase.
Parts of speech liable adj
8. proprietor n. Owner, usually of a business or a building
The proprietor of Hekman’s Windows is Nels Hekman, grandson of
the people who established the factory.
Usage tips Very often, proprietor is followed by an of phrase.
Parts of speech proprietary adj
9. safeguard v. To protect
A burglar-alarm system safeguards our house when we go away on
vacation.
Usage tips Safeguard implies continuous protection over a long time.
10. sole adj. Only
Many people have wanted to invest in Harry’s publishing business,
but he remains the sole owner.
Usage tips Sole almost always appears before the noun it modifies. It
does not come after a linking verb like be.
Parts of speech solely adv