What is Finance?

Erwin Oropesa

How do I define this without sounding like a complete geek? Finance is a term that could be used to describe quite several activities related to banking, credit, money, investments, leverage or debt, and a few other things. In very basic terms, finance equals how we manage funds (money) and getting funds that we need per time. Finance also includes anything that as to do with money to make up the financial systems.

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Many of the underlying strategies in finance were gotten from microeconomic theories. The very basic of these theories is the association between money and time value. These theories essentially revolve around the saying that “a dollar today is worth more than a dollar in the future.” Since every business, individual, and government projects all need monetary funding to stay active, the finance section is primary.

Planning one’s finances involves reviewing the state of your financial position … Read More