topic 2

2. – more expenditure than income; more money paid out than coming in.
4. rate – the money you pay as a charge for the service of using someone else’s money – for example, if you borrow money to buy a car, you pay back the money you borrowed plus interest; or the bank pays you interest on money saved as it has access to your money.
5. – the things that you have to spend your income on.
8. – the money that you make from your job.
9. tax – money deducted from your income by the government to pay for public services such as health and education.
10. income – the money that is left over from your income after you have paid all of your expenses and have put any savings aside.
11. – (1) an organisation set up to help a particular group or issue; (2) the act of donating money or time to a cause.

1. – a high-interest, very secure government bond (see ‘Bonds’).
3. – someone who uses or buys goods and services. Debt – money owed to another person or organisation such as a bank.
4. – something that you buy because it is likely to make you money in the future – for example, property may increase in value so that you can sell it for more than you bought it and make a profit, or you can rent it out.
6. policy – the decisions a government makes about taxes and what to spend public money on.
7. – all the money (or items worth money) that you receive, including through work, investments and government benefits.
8. – the state of a country relating to the amount of money that is in the system and the production and consumption of goods and services.