Important Vocabulary

• Income tax: The tax people pay on their wages and salaries
• Direct tax: A tax on wages and salaries or on company profits
• Progressive tax: A tax levied at a higher rate on higher income
• Indirect tax: A tax paid on the property, sales transactions, imports, and so on
• Value-added tax: A tax collected at each stage of production, excluding the already-taxed costs from the previous stages
• Capital gain tax: Profits made by selling assets
• Capital transfer tax: Gifts and inheritances over a certain value
• Wealth tax: The annual tax imposed on people’s fortune
• Tax evasion: Making false declarations to the tax authorities
• Tax avoidance: Reducing the amount of tax you pay to a legal
• Depreciation: Reducing the value of a fixed asset, by charging it against profits
• Disincentive: Something which discourages an action
• Regressive: An adjective describing a tax that is proportionally higher for people with less money
• Consumption: Spending money to buy things, rather than saving it
• Self-employed: Working for yourself, being your own boss
• National insurance: A tax levied on incomes that pay for sickness benefits, unemployment benefits, and old-age pensions
• Perks: Non-financial benefits or advantages of a job
• Tax shelter: A way to delay the payment of tax to a later time
• Tax-deductible: An adjective describing expenditures that can be taken away from taxable income or profits
• Tax haven: A country offering very low tax rates to foreign businesses

Matching up the Central Banking Functions With Given Expressions

• Printing money and destroying it: Controlling the number of banknotes in circulation
• Setting interest rates, ceilings, and floors: Establishing maximum and minimum lending rates, thereby controlling the credit system
• Commercial banking supervision: Ensuring that banks have a sufficient liquidity ratio to allow customers to withdraw their deposits when they want
• Exchange rate supervision: Intervening on foreign exchange markets, buying or selling large amounts of the national currency, to prevent major fluctuations
• Act as a lender of last resort: Lending money to a commercial bank in danger of going bankrupt
• Open market operations: Selling government bonds to commercial banks or buying them back, to alter the amount of credit the banks can offer (and thereby alter the money supply)

Extracted From

MacKenzie, I. (2002). English for Business Studies: A course for Business Studies and Economics students (2nd ed.). Cambridge University Press.