Finance corresponds to an economic area that studies the management of money and capital, financial resources.
And also, It looks at both the obtaining of these resources and the investment and saving of them.
The intermediary financial are the agents dedicated to contacting the two parts of finance, savers, and those who need funding.
Finances help control income and expenses, both for the Government, for companies, and each of us.
And also, Finance is the economics area that studies the functioning of the money and capital markets.
The institutions that operate in them, the policies for attracting resources, the value of money over time, and capital cost.
Finances can be dividing into four large groups
It focuses on the study of obtaining and managing the resources of companies.
Refers to the study of obtaining and managing the resources of families or individuals.
It deals with the study of obtaining and managing the financial resources of State institutions.
It refers to the study of financial transactions at the international level.
The following characterizes finances
Given the fundamental principle of every economy.
The resources available in the world are finite, while the needs that we must cover with them are infinite.
Put another way that money is not enough to do or have it all at once.
And also, The importance of a field of study, such as finance, is obvious.
Finance allows individuals and organizations to play the game of capitalism in the best possible way.
Waste, lousy investment, administrative clutter, and poor decisions can lead a productive and useful initiative to its ruin.
And also, The resource management is something that no one today can afford to ignore.
Finance studies a wide range of transactions related to the optimal management of financial resources.
His areas of study include
When is it convenient or not to invest in a project, or how to choose between several projects?
Keep debt under control and take advantage of its benefits to grow in the future.
Control the loss of value of money in scenarios with inflation.
Value the assets based on their risk and expected rate of return.
It is a financial resource that is using to manage the expenses and income of a company.
It is a crucial tool to know what situation a company is in and, with this documentation, to establish the necessary strategies to improve its economic performance.
Accounting can manage any group: corporate finance, personal finance, public finance, and international finance.
They are the field that analyzes finance from a psychological point of view.
And also, It was born from the union of psychology, traditional economics, and neuroeconomics.
The Origin of finance can be originate around the 15th century, with the rise of capitalism.
At this time, commercial banks that offer intermediation, loan, and savings services begin to develop.
Over time, financial institutions and their products have evolved and modernized.
New intermediaries other than traditional banks have appeared and new financial products that offer many options to customers.
And also, Its scope of study has been refining over time, with the development of theories.
That attempt to explain the optimal determination of asset prices, expected profitability, decisions in uncertain scenarios, etc.
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