We will move step by step: first the core vocabulary, then a realistic scenario, then the language patterns that hold it all together, and finally a short practice activity. Take your time, read the dialogue aloud, and try to reproduce the patterns in your own words.

Key vocabulary

Before the scenario, study these eight essential terms. Read each definition aloud, then write one sentence per term using a real situation from your own work in Finance & Banking.

**liquidity** — the ease with which an asset can be converted into cash.

**hedge** — to reduce risk of adverse price movements.

**yield** — the income return on an investment.

**leverage** — the use of borrowed capital to increase potential return.

**due diligence** — a thorough investigation before signing a deal.

**covenant** — a clause in a loan agreement requiring certain actions.

**NAV** — net asset value of a fund.

**spread** — the difference between two prices or rates.

Scenario in context

It is Monday morning. You are sitting in a meeting room with two international colleagues. The agenda mentions balance sheets, and your manager has asked you to lead the discussion. You take a breath and begin.