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What is Finance?
A) Finance can be described as the study of how people allocate their assets over time under conditions of certainty as well as uncertainty. A key point in finance, which affects decisions, is the Time value of money. This states that a unit of currency today is worth more than the same unit of currency tomorrow. Finance will price assets based on their risk level as the expected rate of return.
B) Finance is a branch of economics that is concerned with resource allocation and resource management, acquisition, and investment. It deals with matters related to money as well as to the market. It raises money through the issuance and sale. Money is raised also through debt and equity.
C) Finance is the science of the management of money and other assets. Since it is the management of money it can be the management of money, banking, investments, and credit. It finances Monetary resources such as the funds, especially those of a government or corporate body.
D) Finance is the process of channeling funds from savers to users in the form of credit and loans or invested capital through agencies. The agencies will include a commercial bank, and savings, and loan associations. It also includes nonbank organizations such as unions and investment companies.
F) Finance consists of financial systems, which include public and private as well as government spaces. It also includes the study of finance and financial instruments. So this can relate to countless assets and liabilities. Finance is also divided into three distinct categories as
a) Public finance
b) Corporate finance
c) Personal Finance
Three categories of finance contain many sub-categories.
The study of finance can also take numerous forms, depending on the field or area of finance which one wishes to study. For instance, economics is considered a pillar of financial science, where macro, as well as microeconomics factors, affect levels of financial decisions and outcomes at all levels.
In addition to this, the study of behavioral finance aims to study more "human" side of science that is considered to be highly mathematical. This demonstrates that the study of finance can sometimes be art rather than science.
Describe the purpose of studying finance.
1. To prepare students to become knowledgeable and ethical consumers
2. To understand the basic theory of finance
3. Solve Problems and Explore Issues
4. prepares you to choose career plans and also to develop the tools you will need to get and keep employment, now and in the future.
5. Wise career decisions by finance students are a major part of financial success.
6. Careful research into descriptions of potential careers will help you make good career choices