Money and Finance – Choose The Correct Word Exercise

Complete sentences and paragraphs 1 – 20 with a word or expression from the box. In each case, the word / expression you need is connected in some way with the word in bold in the same sentence / paragraph (for example, it might have a similar meaning, it might be an opposite, or it might be a word that is sometimes confused with that word). In some cases you might need to change the form of the word in the box.

balance * bank * bankrupt * bargain * bill * borrow * broke * bankrupt * cash * check * cost of living * credit card * credit * debt * debit * deposit * discount * distribution of wealth * dividends * economical * economize * exorbitant * expenditure * extravagant * frugal * income * income tax * inflation * inherit * insolvent * interest * in the black * in the red * invest * investment * invoice * lend * loan * loss * market * mortgage * on credit * overcharged * overdraft * overpriced * pension * priceless * profit * receipt * reduction * refund * salary * save * savings and loan association * shares * statement * stocks * tax / rent (etc) rebate * undercharged * unemployment / housing / child (etc.) welfare * wage * wealthy * welfare * withdraw * worthless

1. Income is the money you receive (your wage or salary is part of your income), and _____________ refers to the money you spend.

2. If you lend money, you let someone use your money for a certain period of time. If you _____________ money, you take someone’s money for a short time, and then you pay it back.

3 A discount is the percentage by which a full price is reduced in a store. A _____________ is money paid back to a customer when, for example, they return something to a store.

4. If a person or company is insolvent, they have lost all their money. If a person or company is _____________, they have lost all their money, have then borrowed a lot, and cannot pay it back.

5. A bank statement is a detailed written document from a bank showing how much money has gone into and come out of a bank account. A _____________ is the amount of money you have in your bank account.

6. If your bank account is in the red, the amount of money you have spent is greater than the money you have made, and so you have less than $0 in your bank account. If your account is _____________, you have more than $0 in your bank account.

7. An invoice is a note, or bill, sent to you to ask for payment for goods or services, and a _____________ is a note (from a store, for example) which shows how much you have paid for something.

8. When you make a profit, you gain money from selling something which is more than the money you paid for it. When you make a _____________, you have spent money which you have not gotten back.

9. Something which is overpriced is too expensive. Something which is _____________ costs much more than its true value.

10. If you save money, you keep it so that you can use it later. If you _____________ money, you put it into property, stocks, etc., so that it will increase in value.

11. A wage and a _____________ are both money you receive for doing a job, but the first is usually paid daily or weekly and the second is usually paid monthly.

12. A worthless object is something which has no value. A _____________ object is an extremely valuable object.

13. If you deposit money in an account, you put money into the account. If you _____________ money, you take it out of your account.

14. If you have been undercharged, you have paid less than you should have for goods or services. If you have been _____________, you have paid too much.

15. Extravagant describes someone who spends a lot of money. _____________ describes someone who is careful with money.

16. A bill is a piece of paper showing the amount of money that you have to pay for goods or services. A _____________ is the same thing, but shows what you have to pay after a meal in a restaurant.

17. When you credit an account, you put money into it. When you _____________ an account, you take money out of it.

18. A bank is a business which holds money for its clients, and deals with money generally. A _____________ is similar, but is usually used by people who want to save money, or to borrow money to buy a house.

19. A loan is money that you borrow from a bank to buy something. A _____________ is similar, but in this case the money is only used to buy property.

20. A loan is money that you borrow from a bank, where a formal arrangement has been made with the bank to borrow it. An _____________ is the amount of money that you take out of your bank account, which is more than there is in your account. It is usually done without making a formal arrangement with your bank.

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