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Describe the purpose of studying finance?

  • To prepare students to become knowledgeable and ethical consumers
  • To understand the basic theory of finance
  • Solve Problems and Explore Issues
  • 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.
  • Wise career decisions by finance students are a major part of financial success.
  • Careful research into descriptions of potential careers will help you make good career choices

 

Describe Finance

  • 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.

 

  • Finance is a branch of economics which is concerned with resource allocation and resource management, acquisition and investment. It deals with matters related to money as well as to market. It raises money through the issuance and sale. Money is raised also through debt and equity.

 

  • Finance is the science of the management of money and other assets.  Since it is the management of money it can be management of money, banking, investments and credit. It finances Monetary resources such as the funds, especially those of a government or corporate body.

 

  • 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 commercial bank, savings and loan associations.  It also includes non bank organizations as union and investment companies.

 

  • Finance consists of financial systems, which include the public and private as well as the government spaces.  It also includes the study of finance and the financial instruments. So this can relate to countless assets and liabilities. Finance is also divided into three distinct categories such 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 as 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 a science which is considered to be highly mathematical. This demonstrates that the study of finance can sometimes be art rather than science.