Banking/Investing/Financial terms 6
✓ Useful for TOEIC
A focused vocabulary exercise for ESL learners working in or with the finance industry. These expressions appear regularly in banking communications, financial reports, and industry publications.
READY TO PRACTICE? LET’S GO!
Choose the correct response to complete each sentence.
1. Asset ___________________ involves dividing an investment portfolio among different asset categories, such as stocks, bonds, and cash.
Correct answer: allocation.
2. In banking terms, someone's portfolio is a collection of their ___________________.
Correct answer: investments.
3. ___________________ investor is more likely to risk losing money in order to get better results.
Correct answer: An aggressive.
4. What's the opposite of an aggressive investor?
Correct answer: A conservative investor.
5. ___________________ the stock market can be risky, but it often yields higher returns than other investments.
Correct answer: Playing.
6. Proponents of diversification believe that you shouldn't put all your eggs ___________________.
Correct answer: in one basket.
7. A mutual fund is a form of ____________________ investment that pools money from many investors and invests it in stocks, bonds, and other securities.
Correct answer: collective.
8. A commodity, such as crude oil, sugar, or gold, can be readily ____________________.
Correct answer: traded.
9. Whenever I __________________ (meaning: notice) a trend, I let my clients know about it.
Correct answer: spot.
10. What are the __________________ risks associated with this approach?
Correct answer: financial.
📚 Important Words to Know
hedge fund — a pooled investment fund using advanced strategies, typically available only to institutional or accredited investors
underwriting — the process of evaluating and assuming financial risk for a fee, used in loans, insurance, and securities
amortization schedule — a table showing periodic loan payments broken down by principal and interest over the life of the loan
letter of credit — a bank document guaranteeing a buyer's payment to a seller, used frequently in international trade
default — the failure to meet the legal obligations of a loan, such as missing scheduled payments
fiduciary — a person or institution with a legal obligation to act in another party's best financial interest
money market — a financial market for short-term, low-risk debt instruments and highly liquid securities
yield — the earnings generated on an investment, expressed as a percentage of its cost or current market value
repo rate — the interest rate at which a central bank lends money to commercial banks on a short-term basis
non-performing loan (NPL) — a loan on which the borrower has not made scheduled payments for a specified period, usually 90 days
hedge fund — a pooled investment fund using advanced strategies, typically available only to institutional or accredited investors
underwriting — the process of evaluating and assuming financial risk for a fee, used in loans, insurance, and securities
amortization schedule — a table showing periodic loan payments broken down by principal and interest over the life of the loan
letter of credit — a bank document guaranteeing a buyer's payment to a seller, used frequently in international trade
default — the failure to meet the legal obligations of a loan, such as missing scheduled payments
fiduciary — a person or institution with a legal obligation to act in another party's best financial interest
money market — a financial market for short-term, low-risk debt instruments and highly liquid securities
yield — the earnings generated on an investment, expressed as a percentage of its cost or current market value
repo rate — the interest rate at which a central bank lends money to commercial banks on a short-term basis
non-performing loan (NPL) — a loan on which the borrower has not made scheduled payments for a specified period, usually 90 days
▶ Keep practicing — more exercises for you:
Banking English 1
Banking English 2
Banking English 3
Banking English 4
Banking English 5
Banking English 7
Accounting English 1
Accounting English 2
Banking English 2
Banking English 3
Banking English 4
Banking English 5
Banking English 7
Accounting English 1
Accounting English 2
Want ad-free practice? Check out our Premium Resources below.
Premium resources
ONLINE COURSE
Business English Conversations —
practice real workplace language BUSINESS ENGLISH GLOSSARY key terms explained clearly WORKSHEET COLLECTION printable PDFs for self-study
and classroom use
practice real workplace language BUSINESS ENGLISH GLOSSARY key terms explained clearly WORKSHEET COLLECTION printable PDFs for self-study
and classroom use
Our other sites
Connect & follow
Cookie & privacy policy /
Content policy /
Contact: info (at) businessenglishsite.com
© 2007–2026 BusinessEnglishSite.com (a division of LearnEnglishFeelGood.com). All rights reserved.