Financial Vocabulary

#341

Balance of payments

Example sentences

1. The balance of payments records transactions with other countries.
2. The country reported a balance of payments deficit.
3. Exports and foreign investment affect the balance of payments.

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#342

Current account

Example sentences

1. The country has a current account surplus.
2. The current account includes trade and income flows.
3. Higher imports widened the current account deficit.

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#343

Capital account

Example sentences

1. The capital account records certain international asset transfers.
2. The report separates the capital account from the current account.
3. A debt cancellation appeared in the capital account.

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#344

Trade balance

Example sentences

1. The trade balance improved as exports rose.
2. Trade balance compares exports with imports.
3. The country published its monthly trade balance.

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#345

Trade surplus

Example sentences

1. The country has a trade surplus because exports exceed imports.
2. The trade surplus increased foreign currency earnings.
3. Strong energy exports created a trade surplus.

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#346

Trade deficit

Example sentences

1. The country reported a large trade deficit.
2. A trade deficit occurs when imports exceed exports.
3. Higher fuel imports widened the trade deficit.

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#347

Foreign direct investment

Example sentences

1. The factory was built with foreign direct investment.
2. Foreign direct investment can create jobs.
3. The government changed rules to attract foreign direct investment.

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#348

Portfolio investment

Example sentences

1. Foreign investors made portfolio investment in local bonds.
2. Portfolio investment can move quickly between countries.
3. The country received more portfolio investment this quarter.

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#349

Sovereign debt

Example sentences

1. The government issued sovereign debt to fund public projects.
2. Investors worried about the country's sovereign debt.
3. A credit downgrade raised the cost of sovereign debt.

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#350

Special drawing rights

Example sentences

1. The country received special drawing rights from the IMF.
2. Special drawing rights can support international reserves.
3. The central bank recorded the special drawing rights as an asset.

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#351

Real estate

Example sentences

1. She invested in real estate by buying an apartment.
2. Real estate prices rose in the city.
3. The bank has a team for real estate loans.

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#352

Property

Example sentences

1. The family bought a property near the school.
2. The property needs repairs before it can be rented.
3. The bank valued the property at $200,000.

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#353

Mortgage

Example sentences

1. They used a mortgage to buy their home.
2. The mortgage payment is due each month.
3. A mortgage is usually secured by the property.

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#354

Down payment

Example sentences

1. They saved $30,000 for the down payment.
2. A larger down payment can reduce the loan amount.
3. The buyer paid the down payment at closing.

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#355

Loan-to-value ratio

Example sentences

1. The mortgage has a loan-to-value ratio of 80%.
2. A lower loan-to-value ratio may reduce the lender's risk.
3. The bank calculated the loan-to-value ratio after the appraisal.

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#356

Home equity

Example sentences

1. Their home equity increased as the mortgage balance fell.
2. Home equity is the home's value minus the loan.
3. She used part of her home equity for repairs.

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#357

Home equity loan

Example sentences

1. They took a home equity loan to improve the kitchen.
2. A home equity loan uses the house as security.
3. The home equity loan has fixed monthly payments.

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#358

Home equity line of credit

Example sentences

1. She opened a home equity line of credit for future repairs.
2. A home equity line of credit lets the owner borrow when needed.
3. The interest rate on the home equity line of credit can change.

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#359

Fixed-rate mortgage

Example sentences

1. They chose a fixed-rate mortgage for stable payments.
2. The interest rate on a fixed-rate mortgage does not change.
3. A fixed-rate mortgage can make budgeting easier.

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#360

Adjustable-rate mortgage

Example sentences

1. The adjustable-rate mortgage started with a low rate.
2. Payments may rise when the adjustable-rate mortgage changes.
3. She studied the limits before choosing an adjustable-rate mortgage.

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