Banking Explained – Money and Credit

Important Vocabulary Words From The Video


To plummet is to fall rapidly and suddenly. When the stock prices fell, the market plummeted.

  • The stock prices plummeted when the company released their latest earnings.
  • The plummet in the stock prices caused a lot of people to lose a lot of money.

To bailout is to provide financial assistance to someone or something. Sometimes the bailout is a short-term solution, while other times it is a long-term solution.

  • The government decided to bailout the banks, which meant that they were going to provide them with money.
  • The company was about to go bankrupt, and the government decided to bailout them with money.

The term maximisation is used in economics to describe the goal of an individual or company to make as much money as possible.

  • The company is maximising profits by doing whatever it can to increase sales.
  • The maximisation of happiness is the goal of the government.

To democratically vote is to cast your vote according to the majority of the people who are voting. When you democratically vote, you are voting for the candidate or idea that you believe is the best choice.

  • The election was democratically decided, with the majority of the votes going to the candidate that everyone was expecting.
  • The company is democratically owned, which is why everyone has a say in the decisions that are made.

To circumvent something is to find a way around it. Sometimes people use the word to describe the act of avoiding or breaking the law.

  • He circumvented the security measures to get into the building.
  • The company circumvented the law by paying the workers in cash instead of using the required social security number.