Answer Key

Financial markets – Practice 2

Fill in the gaps with the appropriate word or phrase in the correct form.
  1. One cannot be successful in business unless one is willing to  [take] risks.
  2. The Euro and Pound fell  [against] the US Dollar.
  3.  [bond] is simply a loan, but in the form of a security, although terminology used is rather different.
  4.  [Securities] may be represented by a certificate or, more typically, by an electronic book entry interest.
  5. The U.S. dollar continues to  [strengthen] against the Euro and pound despite a weaker than expected housing starts report in July.
  6. Of course, no bull market can last forever, and sooner or later a  [bear] market (in which prices fall) will come.
  7. Reporters called the trade in India dull as investors play  [safe] .
  8.  [Volatility] is the measure of the state of instability.
  9.  [Commodity] markets are markets where raw or primary products are exchanged.
  10. However, when financial  [exposure] is high investment can fall and financial conditions can worsen in response to favorable productivity shocks, due to detrimental balance-sheets effects.