Finance is a very broad subject that describes various activities related to banking, borrowing, leveraging, money, financial markets, government, economy, and other financial activities. Essentially, finance represents the process and management of money, borrowing, investments, liabilities, and assets which form the major part of our finance systems. There are three bodies namely, government, central banks and private sectors that constitute the major part of finance. In this modern world finance is important for the proper functioning of all economic sectors. In simple terms, it is the science of money.
With a sound knowledge of money one can easily predict the state of the economy and develop the necessary action to tackle the problem. The main aim of finance is to create resources which can be used for the benefit of the society. It helps the entrepreneurs to create products which can be used by people in everyday life. Thus, money facilitates the economic growth.
For a thriving and long lasting economy, finance plays a pivotal role. All the sectors of the economy depend on the money regime. Therefore, proper management of the money flow is essential for the growth of any industry or business. In fact, to attain success, proper knowledge of the various types of finance is very important as only through a thorough knowledge of money and its processes, one can predict the healthiness of the economy as a whole.