Set 283 · Study 1 / 5

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derivative

noun/dɪˈrɪvɪtɪv/

a financial instrument whose value is based on the value of another asset

The hedge fund invested heavily in various **derivatives** to hedge against market fluctuations.

securityfinancial contractoption
word origin — from Latin 'derivativus', from 'derivare' meaning 'to draw off' or 'to lead off'

SAT Vocabulary Level 1 — Set 283

Set 283 of SAT Vocabulary Level 1 covers 5 words: derivative, encounter, affinity, equivalence, fracture. Each entry below includes its definition, an example sentence, and synonyms — practice them with the interactive cards above.

  1. derivative · noun/dɪˈrɪvɪtɪv/

    a financial instrument whose value is based on the value of another asset

    The hedge fund invested heavily in various **derivatives** to hedge against market fluctuations.

    Synonyms: security, financial contract, option

    Origin: from Latin 'derivativus', from 'derivare' meaning 'to draw off' or 'to lead off'

  2. encounter · noun/ɪnˈkaʊntər/

    a meeting or confrontation with someone or something

    During their hike, they had an unexpected encounter with a family of deer in the forest.

    Synonyms: meeting, confrontation, engagement

    Origin: Middle English: from Old French 'enconter', from Latin 'incontra', meaning 'against' or 'in opposition'

  3. affinity · noun/əˈfɪnɪti/

    a natural liking or sympathy for someone or something

    She has a strong affinity for classical music, often attending concerts and playing the piano in her free time.

    Synonyms: liking, attraction, inclination

    Origin: Middle English, from Latin 'affinitas', from 'affinis' meaning 'related by marriage or connection'.

  4. equivalence · noun/ɪˈkwɪvələns/

    the state of being equal or interchangeable in value, function, or meaning

    In mathematics, the concept of equivalence is crucial for understanding how different equations can represent the same relationship.

    Synonyms: parity, likeness, sameness

    Origin: from late Middle English, from Latin 'aequivalentia', from 'aequivalens', meaning 'equal in force or worth'.

  5. fracture · noun/ˈfræk.tʃɚ/

    a break or crack in a hard object or material

    The engineers discovered a serious fracture in the bridge support that required immediate repair.

    Synonyms: break, crack, split

    Origin: Middle English 'fracture', from Latin 'fractura', from 'frangere' meaning 'to break'