Build your finance English vocabulary with this comprehensive exercise. From monetary policy to market instruments, these are the terms that appear in financial news, reports, and professional discussions.
💵 Did you know? Finance edition "In the red" and "in the black" come from the traditional practice of writing losses in red ink and profits in black ink in account books. "We finished the quarter in the black" means profitable; "in the red" means operating at a loss. Both expressions are widely used in everyday business English. The word "leverage" in finance means using borrowed money to increase potential returns. Outside finance, it's used as a verb in business meetings everywhere: "We can leverage our existing relationships to enter the new market." It's one of the most overused words in corporate English. "Hedge" in finance means reducing risk by taking an offsetting position. In everyday English it survives in "hedging your bets" — covering multiple options to avoid total loss. The connection to financial hedging is direct.
READY TO PRACTICE? LET’S GO!
Choose the correct response to complete each sentence.
1. One billion shares ___________________ hands. = One billion shares were traded.
Correct answer: changed.
2. These stocks accounted for the ___________________ (meaning: for most) of the trading volume.
Correct answer: bulk.
3. Sophisticated investors are ___________________ (meaning: are not getting involved with) these types of assets.
Correct answer: shying away from.
4. The opposite of a steady market is a ___________________ market.
Correct answer: volatile.
5. a ___________________ recession = a recession that might happen
Correct answer: potential.
6. A ___________________ company is one that does not have much money available.
Correct answer: cash-strapped — Cash-strapped describes a person or organization with very little money.
7. These _______________ measures will hopefully improve the economy.
Correct answer: stimulus.
8. The economy is ___________________. = The economy is improving.
Correct answer: back on track.
9. When a company misses its earnings ____________________, it earns less than projected.
Correct answer: forecast.
10. A company that is "___________________ a beating" is doing very poorly, financially speaking.