Finance is a broad spectrum term in the first place, which describes the system and study of a variety of financial activities and financial instruments such as investing, borrowing, lending, forecasting, saving, budgeting, lending and so on. In brief, you can define finance as the management of money.
It is closely concerned with investments with assets and liabilities. In fact, finance is a commercial discipline when describing it at its most basic level. Finance is simply a branch of economics. Some people think that finance is a society or art that teaches how to make good use of money in order to get the most value for the invested funds.
With that in mind, learning the art or science of finance is equally beneficial for people belonging to different professions. It is very interesting to learn the origin of the term finance as it will help us learn how it used to help people even in dark ages.
The evidence is present to prove some important things about the term as a result of tracing the origin of the word. The word ‘finance’ is from the French word, were you aware of that? Two relation activities can be described by the term finance.
One is to acquire money and the second is to manage. In fact, you need to know the process of acquiring money. Finance can be categorized into three: personal finance, corporate finance, and public finance. Providing examples of financial activities make is very easy to define finance.
A few finance examples include lending money, developing a forecast, using excel spreadsheets, lending money, borrowing money and investing person money is GICs, bonds, stocks including assets and liabilities over time and space.
What you finally learn by studying finance is to manage money efficiently as it is concerned with investment, acquisition, resource management, and resource allocation. Some people need to borrow while some people can afford to lend them.