13 | American currency and banking system

Today you will learn 5 new English words related to "American currency and banking system"

Author

SEWT Team
October 21, 2024

American currency and banking system

Understanding “American currency and the banking system is crucial for you as an ESL learner living or planning to live in the US. Knowing the names and values of coins and bills allows you to make purchases confidently. Similarly, familiarity with basic banking concepts like opening an account, using a debit card, and understanding common fees helps you manage your finances effectively. Today’s vocabulary words will not only help you obtain financial literacy, but also empower you to navigate daily life in the US and participate fully in the American economy.

In today’s lesson, you’re going to have:

  • 5 advanced English vocabulary words about American currency and banking system.

  • 15 examples of phrases that you can use on a daily basis.

  • Eye-catching images will help you learn and retain the vocabulary.

5 VOCABULARY WORDS

1. Currency

Noun

📚 DEFINITION

The money in circulation, including coins and paper notes, issued and accepted by a government as a medium of exchange.

📄 Example Sentences:

  1. The United States dollar is the primary currency used in transactions across the country.

  2. Foreign travelers often exchange their currency for U.S. dollars when visiting America.

  3. Digital currencies like Bitcoin are becoming increasingly popular alongside traditional fiat currencies.

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2. Deposit

Noun, also Verb

📚 DEFINITION

Money placed into a bank account for safekeeping or to earn interest.

📄 Example Sentences:

  1. She made a large deposit into her savings account after receiving her bonus.

  2. The bank offers different types of deposit accounts, including checking and savings.

  3. To open a new account, you typically need to make an initial deposit.

3. Withdrawal

Noun, also Verb

📚 DEFINITION

The act of taking money out of a bank account.

📄 Example Sentences:

  1. He made a withdrawal from the ATM to pay for his groceries.

  2. Online banking allows for convenient withdrawals without visiting a physical branch.

  3. There may be limits on daily withdrawals to prevent fraud and protect account holders.

4. Interest

Noun

📚 DEFINITION

A fee paid on borrowed money, usually a percentage of the loan amount, or earnings from investments or savings accounts.

📄 Example Sentences:

  1. Mortgage rates are influenced by prevailing interest rates set by the Federal Reserve.

  2. High-yield savings accounts offer competitive interest rates to attract depositors.

  3. Investors seek investments with higher returns to maximize their interest income.

5. Inflation

Noun

📚 DEFINITION

The rate at which the general level of prices for goods and services is rising, leading to a decrease in purchasing power of a currency.

📄 Example Sentences:

  1. Inflation erodes the value of savings over time, requiring higher interest rates to combat.

  2. Rising inflation can affect the cost of living, making everyday goods more expensive.

  3. Central banks monitor inflation closely and adjust monetary policy to maintain price stability.

A PARAGRAPH USING THE 5 VOCABULARY WORDS

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The American financial system revolves around the US Dollar, the country's official currency. Paper bills come in denominations from $1 to $100, while coins range from pennies (one cent) to dollars. Managing your money often involves using banks, where you can deposit your cash for safekeeping and easy access. With a debit card linked to your account, you can make purchases electronically, withdrawing funds from ATMs when needed. Banks also offer interest on savings accounts, which means your money grows slightly over time. However, it's important to be aware of inflation, which is the gradual rise in prices that can erode the buying power of your currency. Understanding these financial concepts is key to navigating everyday expenses and building a secure financial future in the US.

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