TU CMAT Masters key terms

A conclusion drawn from evidence in a passage rather than stated outright. Tested by asking what the text implies; the answer must be supported by the wording, not by outside knowledge.

The central point a passage is built to convey, usually found in the opening or closing sentence. Distractors often describe a supporting detail or a single example instead.

The writer's attitude toward the subject, revealed through word choice. Common labels include critical, neutral, ironic, and sympathetic; the correct label must fit the whole passage, not one sentence.

The emotional or evaluative shade a word carries beyond its literal meaning, as when 'thrifty' sounds approving and 'stingy' disapproving. Questions test whether you sense that difference.

The direct, dictionary meaning of a word, stripped of emotional colour. Contrasted with connotation when a question asks why an author chose one near-synonym over another.

A restatement of a sentence or passage in different words that keeps the original meaning intact. Correct answers in comprehension questions are often paraphrases rather than verbatim copies.

A word with the opposite meaning to another, such as 'scarce' and 'abundant'. Vocabulary items often pair an antonym question with a context sentence that fixes the intended sense.

A word or phrase close in meaning to another, such as 'brief' and 'concise'. Few synonyms are exact, so the right choice must also match the grammatical and tonal context.

Surrounding words that hint at an unfamiliar word's meaning, including definitions, examples, contrasts, and cause-effect links. Using them beats guessing from the word's shape or root alone.

A fixed expression whose meaning cannot be worked out from its individual words, as in 'to bite the bullet'. Idiom questions test recognition of the whole phrase, not literal translation.

The rule that a verb must match its subject in number and person. Errors hide in long sentences with intervening phrases, collective nouns, or either/or constructions.

A word, phrase, or clause that describes another element in the sentence. A dangling modifier has nothing logical to attach to, as in 'Walking home, the rain began'.

A fraction expressed out of one hundred, used to compare quantities of different bases. Successive percentage changes do not simply add; a 10% rise then a 10% fall leaves a net 1% loss.

A comparison of two quantities by division, written a:b. Problems usually give a total or a difference and ask for a share, requiring the parts to be summed first.

A statement that two ratios are equal, solved by cross-multiplication. Direct proportion means both quantities rise together; inverse proportion means one falls as the other rises.

Interest computed only on the original principal, using principal times rate times time. It differs from compound interest, which also charges interest on accumulated interest.

Interest calculated on principal plus previously accrued interest, so the balance grows geometrically. For the same rate and term it always exceeds simple interest.

The sum of a set of values divided by how many values there are. A useful shortcut: total equals average multiplied by count, which solves many missing-value problems.

A mean in which each value counts in proportion to an assigned weight rather than equally. Used for combined-group problems, grade point averages, and index numbers.

The middle value of an ordered data set, or the mean of the two middle values when the count is even. Unlike the mean, it is barely affected by extreme outliers.

The value that occurs most often in a data set. A set may have no mode or several; the mode is the only average usable for categorical data such as colours or brands.

A measure of how far values typically spread from the mean, equal to the square root of the variance. A small value means values cluster; a large one means they scatter.

The average of the squared deviations of values from their mean. Squaring makes it sensitive to outliers and gives it squared units, so its square root, standard deviation, is often preferred.

A number between minus one and plus one showing how strongly two variables move together in a straight-line pattern. Correlation does not by itself prove that one variable causes the other.

A deductive argument with two premises and a conclusion, tested by whether the conclusion must follow. Valid form matters more than whether the statements are factually true.

Overlapping circles used to picture sets and their relationships. Drawing the premises as regions quickly shows whether a conclusion is forced, possible, or impossible.

Reasoning from general rules to a guaranteed specific conclusion. If the premises are true and the form valid, the conclusion cannot be false; contrast with induction, which only makes conclusions probable.

Reasoning from observed cases to a general rule, always carrying some risk of being wrong. Strong inductive arguments make the conclusion likely, not certain.

A pair relationship of the form A is to B as C is to D. The task is to name the precise link in the first pair, then find the option matching that same link.

A sequence of numbers, letters, or figures following a rule such as constant difference, multiplication, alternating patterns, or squares. Check differences first, then ratios, then mixed rules.

Government use of taxation and public spending to influence demand, employment, and growth. A budget deficit widens when spending exceeds revenue, and is financed by borrowing.

Central bank control of money supply and interest rates to manage inflation and output. Raising the policy rate typically cools borrowing and prices; cutting it stimulates spending.

A sustained rise in the general price level that erodes purchasing power. It is measured by comparing a price index for a basket of goods across periods.

The market value of all final goods and services produced within a country in a period. Real GDP strips out price changes so growth reflects output, not inflation.

A country's record of transactions with the rest of the world, covering trade in goods and services plus capital flows. Persistent deficits pressure the exchange rate and foreign reserves.

The system in which every transaction is recorded as equal debits and credits, keeping the accounting equation in balance. It underpins the trial balance and the financial statements.

Assets equal liabilities plus owner's equity. Every transaction changes at least two elements while preserving this equality, which is why the balance sheet always balances.

A statement of assets, liabilities, and equity at a single date, showing what the business owns and owes. Unlike the income statement, it covers a moment, not a period.

The systematic allocation of a fixed asset's cost over its useful life, such as by the straight-line method. It is a non-cash expense that reduces reported profit and book value.

Current assets minus current liabilities, measuring short-term liquidity. Positive working capital suggests a firm can meet obligations falling due within a year.

The sales volume at which total revenue equals total cost, so profit is zero. Found by dividing fixed costs by contribution per unit, that is, price minus variable cost.

Dividing a broad market into groups with similar needs, then targeting the most attractive. Segments are usually formed on demographic, geographic, psychographic, or behavioural bases.

The four controllable levers of product, price, place, and promotion used to reach a target segment. Effective mixes align all four elements with the chosen positioning.