Finance and its types

According to Investopedia “The science that describes the management, creation and study of money, banking, credit, investments, assets and liabilities is called Finance”. It consists of financial systems, which include the public, private and government institutions, and the study of finance and financial instruments, which can relate to numerous assets and liabilities. Economics is the mother domain of  and Accounting is its language of communication. At times it is sorted into three constructs namely: public, corporate and personal .

Public finance: It is the area of study of the role of the government in the economy This department  assesses the government revenue and government expenditure by the public authorities and the adjustment of one or the other to achieve desirable effects and avoid undesirable ones.The purview of  is measured in threefold: governmental effects on

(1) Efficient allocation of resources

(2) Distribution Of Income

(3) Macroeconomic Stabilization.

Corporate finance: It is study of finance dealing with the sources of funding and the capital structure of corporations and the measures that managers take to maximise the value of the firm to the shareholders, as well as the tools and analysis used to allot financial Should a proposed investment be made? How should the company pay for it; with equity or with debt, or combination of both? Should shareholders be offered dividends on their investment in the company? These are just some of the questions a corporate financial officer attempts to answer on a consistent basis.It is looked after in two-time period domains i.e short term and long-term

Personal Finance: All financial decisions and activities of an individual, this could include budgeting, insurance, savings, investing, debt servicing, mortgages and more  a part of personal finance. Financial planning generally involves analyzing your current financial position and predicting short-term and long-term needs.

Finance is one of the most essential part of life as no one can ever escape it and its need. All the management of money falls under this department only.

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