Project Sample

VOCABULARY WORK (400-600)

WORDS/ EXPRESSIONS)
http://www.economist.com
http://www.ft.com
http://www.forbes.com
ARTICLE TITLE: Economic Predictions for
2010
1. Bankruptcy= Legal procedure for liquidating
a business (or property owned by an individual)
which cannot fully pay its debts out of its current
assets.
None of them has used the great
if difficult opportunity bankruptcy
gives them to reinvent their
businesses and themselves.
2.Liquidation= Winding up of a firm by selling
off its free (un-pledged) assets to convert them
into cash to pay the firm's unsecured creditors.
It has not only prevented giant
companies such as United Airlines
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and General Motors from going

into premature liquidation,
throwing thousands of people out
of work.
3. Consumer= End user, purchaser of a good or
service in retail.
It is national, regional or even
local governments in EU countries
who actually apply the EU's health
and consumer protection laws.
4.Statement = Chronological summary of all
transactions associated with an account during a
stated period, and their effect on the account.
Agency officials told Elko County
commissioners on Thursday that
the draft environmental impact
statement for the plan won't be
released until April or May.
5.Shareholder =Individual, group, or
organization that holds one or more shares in a
firm, and in whose name the share certificate is
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issued. It is legal for a firm to have only one

shareholder. Also called stockholder.
The WBS Romania Management
proposes its shareholders an in
principle merger with Transilvania
capital, as the Broker Cluj
shareholders rejected the
absorption of this brokerage firm
last year, according to the notice
to attend transmitted by the
brokerage house headed by
Cristian Sima.
6. Financial crisis=A situation in which the
supply of money is outpaced by the demand for
money. This means that liquidity is quickly
evaporated because available money is
withdrawn from banks (called a run), forcing
banks either to sell other investments to make up
for the shortfall or to collapse. See also
recession.
The international financial crisis
might have an indirect effect upon
Romanian economy, as this could
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reduce capital flows and

investors appetite for risk,
analysts said.
7. Delay=unplanned deferment of a scheduled
activity because of some thing or occurrence that
impedes its commencement or continuation.
Delay usually has time-associated cost effects on
a contract which may be measured in terms of
time, money, or a combination thereof.
A major spike in oil prices would delay
an economic recovery in the United
States, U.S. energy secretary Steven
Chu said at a news conference on
Sunday.
8.Stockout costs=Economic consequences of
not being able to meet an internal or external
demand from the current inventory. Such costs
consist of internal costs (delays, labor time
wastage, lost production, etc.) and external costs
(loss of profit from lost sales, and loss of future
profit due to loss of goodwill). Also called
shortages costs.

This paper shows that differnences

between the costs of holding
inventories and the costs of incurring
atockouts provide a convenient
theoretical distinction between
production to-stock and production
to-order industries.
9.Payment terms= Conditions under which a
seller will make a sale. Typically, these terms
specify the period allowed to a buyer to pay off
the amount due, and may demand cash in
advance, cash on delivery, deferred payment
period of 30 days or more, etc.
Offering bigger payment terms our
distributors have the possibility to
have sufficient quantities and a bigger
diversity referring to the dimensions
of our panels.
10.Asset= Something valuable that an entity
owns, benefits from, or has use of, in generating
income. In accounting, an asset is something an
entity has acquired or purchased, and which has
money value (its cost, book value, market value,
or residual value)
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11. Pickup= The value gained in a bond swap

for which the bond purchased has a higher yield
than the bond sold.
Investors are focusing on the pickup
in economic activity and anticipating a
rebound in travel
12.Secured debt= Loan amount for which the
borrower pledges one or more assets of equal or
greater liquidation-value as a security which
may be forfeited in case of a default. Also called
secured loan.
13. Bail out= Excessive selling of a firm's stock
by its stockholders, perceived as a lack of their
confidence in the profitability or viability of the
firm.
The treaty that created the euro
contains a no bail-out clause that
prohibits one country from assuming
the debts of another.
14.Liquidity= Measure of the extent to which a
person or firm has (or has the ability to quickly
put hands on) cash to meet immediate and shortterm obligations.

Bank deposits are safe, as liquidity

shortage is not threatening any
Romanian bank.
15. Creditor= Entity to whom money is owed
Greeces public finances a matter
between it and its creditors.
16.Consumer surplus=In economics, the
satisfaction (utility) consumers receive for which
they do not have to pay for.
This notion of the demand curve has
an interesting implication known as
the consumers' surplus.
17.Economic benefit= Benefit quantifiable in
terms of money, such as revenue, net cash flow,
net income.
Economic benefit of increasing
utilization of intraveneous tissue
plasminogen activator for acute
ischemic stroke in the United States.
18.Merchant=Wholesaler or retailer who may
buy goods from any or all sources for resale to
anyone and everyone for profit.

Merchant accounts and credit card

processing at the guaranteed lowest
price.
19.Audit= Systematic examination and
verification of a firm's books of account,
transaction records, other relevant documents,
and physical inspection of inventory by qualified
accountants (called auditors).
A telephone survey of 50 chairs of
audit committees of UK-listed
companies.
20.Cash flow=Incomings and outgoings of cash,
representing the trading (operating) activities of
a firm.
Cash flow is often overlooked when
people analyze a company.
21.Recession= Period of general economic
decline, defined usually as a contraction in the
GDP for six months (two consecutive quarters)
or longer.
Americas excessive appetite for risk
helped plunge the world into
recession.

22.Improvements=Additions to or
enhancements of raw land or a building that
normally increase its usefulness and value, and
are intended to remain attached or annexed as
drains, drives, sewers, sidewalks, streets, trees,
etc.
The World Banks annual Doing
Business report provides a wealth of
examples of improvements.
23.Cyclical stock= The stock of a
company which is sensitive to business cycles
and whose performance is strongly tied to the
overall economy.
Westwood Capital managing director
Len Blum says he would avoid cyclical
stocks, arguing that there is
fundamental weakness in the U.S.
economy that will only be fixed by a
second round of targeted government
stimulus.
24.Budget= An itemized forecast of an
individual's or company's income and expenses
expected for some period in the future.

The incident that appears to have slighted the

finance minister came in the midst of budgetdrafting last month.
25. Liquidity trap= Situation where bank cashholdings are rising and banks cannot find
sufficient number of qualified borrowers even at
extraordinary low rates of interest.
Existing proposals to escape from a liquidity
trap and deflation, including my Foolproof Way,'
are discussed in the light of the optimal way to
escape.
26. Dollarisation= means adopting the US
dollar as the currency of choice in a foreign
country.
In the face of continued US overspending, dedollarization threatens to force countries to
return to the kind of dual exchange rates.
27.Bail-out=Excessive selling of a firm's stock
by its stockholders, perceived as a lack of their
confidence in the profitability or viability of the
firm. Excessive selling of a firm's stock by its
stockholders, perceived as a lack of their
confidence in the profitability or viability of the
firm.

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Congress gave the ten-member bipartisan

commission a sprawling mandate: to investigate
at least 22 potential causes, from excess global
savings to short-selling, and to explain why
specific firms collapsed or needed bail-outs.
28. Dumping=Exporting goods at prices lower
than the home-market prices.
His cross-examinations brought forth revelations
of widespread abuses on Wall Street: bankers
selling stocks at preferred prices to powerful
friends, or giving executives bonuses for
dumping dud securities on the public.
29. Budget deficit=amount by which actual
expenses exceed planned expenses. Opposite of
budget surplus.
The big question, however, is whether a
recovery engineered by the state can develop
enough driving force of its own to withstand the
fiscal consolidation needed to reduce an
enormous budget deficit.
30. Upswing=A rally following a decrease in
price. also called rebound.

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The upswing will initially be muted

because consumer spending, which
makes up nearly two-thirds of GDP, is
likely to stagnate.
31. Exchange= Open, organized marketplace
(such as a stock exchange) where buyers and
sellers negotiate prices. Exchanges require an
almost instant (real time) bid and ask matching
mechanism, settlement and clearing, and market
wide price communication and determination.
The reference exchange rate
continued to advance by 0.47 percent
and reached 4.2296 lei per euro.
32. Percentage= Fraction or ratio with 100 as
the fixed and understood denominator.
The fillip to the economy will be
temporary but perhaps substantial,
contributing up to one percentage
point to growth in 2010.
33. Depreciation= Gradual conversion of the
cost of a tangible capital asset or fixed asset
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(excluding land because it has unlimited life)

into an operational expense (called depreciation
expense) over the asset's estimated useful life.
34. Collapse= Sudden and dramatic slowdown
in economic activity, resulting in a steep drop in
prices with a consequent fall in level of
employment.
While world trade was itself in freefall, the benefits to exporters of this
dramatic depreciation were masked
by the collapse of their markets.
35.Monetary= Of or relating to money, or to the
mechanisms by which it is supplied to, and
circulates in, an economy. In comparison, fiscal
relates to public revenues (taxation) and public
spending, debt, and finance.
36. Fiscal policy= Government's revenue
(taxation) and spending policy designed to
counter economic cycles in order to achieve
lower unemployment, achieve low or no
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inflation, and achieve sustained but

controllable economic growth.
If it emerges that the economy did
begin to grow again in late 2009, it
will have been thanks to a jump-start
from exceptionally loose monetary
and fiscal policy.
37.Deflation= Downturn in an economic cycle
caused by circumstances, or brought about by
government policies. Deflation is opposite of
inflation.
Investors were prepared to accept
these emergency policy settings last
year in order to ward off a possible
disastrous slide into depression and
deflation.
38. Tighten= To increase the number of or
severity of regulations for an industry.
The decision may be less tricky than it
appears, since the Bank of England
could offset early budgetary
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tightening by delaying adoption of a

tighter monetary stance.
39.Tax= A fee charged ("levied") by a
government on a product, income, or activity.
Poor wage competitiveness makes it
harder for them to grow quickly and
to generate tax revenue.
40. Competitiveness= Ability of a firm or a
nation to offer products and services that
meet the quality standards of the local and
world markets at prices that are competitive
and provide adequate returns on the
resources employed or consumed in
producing them.
As in Ireland, prices in Spain fell
faster in the year to October than in
the rest of the euro area, a sign of
improving competitiveness .

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Haisan Andreea.
AE I

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