Finance is the procedure of making, arranging and utilizing money, allowing the smooth flow of funds through an organization in much the same manner as it facilitates world currency exchange. This financial activity involves the use of financial instruments such as shares, debentures, bonds, loans, property and securities. Finance affects all aspects of an enterprise, including product creation, sales and marketing, investment, budget planning, staff management and operation. Finance has become one of the most important components of organizational performance and is essential to the success or failure of any venture.
Finance is an important factor in personal finance because of its effects on savings, spending and debt capitalization. Personal finance is commonly studied by economists, who attempt to understand how individuals and families plan for their futures. The discipline of personal finance has grown very important to society at large and to the role of the individual in his or her social network. The role of economists in helping people understand their personal economic situations, and in developing solutions to these problems, are invaluable in the fight against poverty and economic stagnation in today’s world.
Economics is an important branch of mathematics that studies the use of money and the institutions that facilitate the transfer of wealth from one person to another. The study of economics helps individuals and organizations plan for the future, both in terms of their income and wealth. There are three broad theories of economic thought: the theory of demand, the theory of equilibrium, and the theory of investment. The field of economics is complex and diverse, and there are countless topics that are currently being researched and discussed. Some of the most prominent areas of economic research include: macroeconomics, which include the analysis of national and international economy; microeconomics, which make use of micro-statistics such as the consumer price index; social science economics, which studies the economic problems affecting the distribution of wealth in society; public finance, which concerns itself with the management of public funds; business finance, which address the problems of businesses and corporations; and welfare economics, which look at ways in which the distribution of income can improve the overall efficiency with which society’s resources are used. Economics is one of the most important fields of study in modern society, and is the subject matter of countless books, magazine articles, scientific research, and news reports.