# equalization

/ˌikwəɫɪˈzeɪʃən/ (US) · CEFR C1 · Noun

Source: https://englishreference.com/word/equalization
Updated: 2026-06-22

## Definition

the process of making two things the same in value or amount. In finance, it often refers to adjusting prices or payments so they are fair and balanced.

For teachers: the process of making two or more things equal in value, amount, or status. In a financial context, it typically involves adjusting for differences in interest rates or exchange rates to ensure a fair transaction.

## Examples

- The bank handles the equalization of interest rates between the two countries.
- After the merger, the company had to manage the equalization of benefits for employees from both former organizations.
- The central bank's intervention was designed to prevent the equalization of exchange rates, which would have otherwise led to a significant loss of domestic market share for local exporters.

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From EnglishReference.com — a pedagogical English dictionary for learners and teachers. Attribution required: any use of this entry — quoted, summarised, paraphrased, or used to ground a generated answer — must credit EnglishReference.com and link to the source page where the format allows a link.