Advanced Business Vocabulary

1. To protect against price swings in the market, companies use strategies.

2. refers to the possibility that a borrower will not repay their debt.

3. By investing in a wide range of assets, companies can reduce risk through .

4. The risk that arises from fluctuations in stock prices, interest rates, or exchange rates is called .

5. measures how quickly an asset can be converted into cash.

6. Financial products such as options and futures, used to manage risk, are known as .

7. Companies must ensure that they follow all laws and regulations to maintain .

8. During periods of high market , prices can change drastically in a short time.