Words T4

Deflation

In economics, deflation is a decrease in the general price level of goods and services. Deflation occurs when the inflation rate falls below 0% (a negative inflation
rate). Inflation reduces the real value of money over time; conversely, deflation increases the real value of money – the currency of a national or regional economy. This allows one to buy more goods and services than before with the same amount of money.

Spanish translation: Deflación

Examples:

• ‘For example, in a deflationary economy, a computer that sells for $1,000 today might carry a price tag of $990 next year. Or, if you buy a car for $20,000 today, you might be able to buy a better car for $20,000 next year.’

Found in: http://www.bankrate.com/finance/investing/5-ways-to-outlast-deflation-1.aspx

• ‘Deflation is different from disinflation as the latter implies decrease in the level of inflation whereas on the other hand deflation implies negative inflation.’

Found in: http://economictimes.indiatimes.com/definition/deflation

Interest rate 

Interest rate is the amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.

Spanish translation: Tasa de interés

Examples:

• ‘The Swiss government ran a negative interest rate policy in the early 1970s’.

Found in: http://www.investopedia.com/terms/n/negative-interest-rate-policy-nirp.asp

• ‘Interest Rate in the United States averaged 5.83 percent from 1971 until 2016, reaching an all time high of 20.00 percent in March of 1980 and a record low of 0.25 percent in December of 2008.’

Found in: http://www.tradingeconomics.com/united-states/interest-rate

Profit

Financial benefit that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs and taxes needed to sustain the activity.

Spanish translation: Beneficio

Examples:

• ‘Samsung doesn't need to forfeit all profits from several products to Apple’.

Found in: http://money.cnn.com/2016/12/06/technology/samsung-apple-supreme-court/

• ‘Credit Suisse lowers profit targets and steps up cost cuts’.

Found in: https://www.ft.com/content/8b5a733c-bc5c-11e6-8b45-b8b81dd5d080