What is finance? Definitions

1.Definition: Finance is a general term for money circulation and credit activities and related economic activities, and finance in a broad sense refers to all economic activities related to the issuance, custody, exchange, settlement and financing of credit currency, even including the trading of gold and silver, and finance in a narrow sense refers to the financing of credit currency.

The content of finance can be summarized as the issuance and withdrawal of currency, the absorption and payment of deposits, the issuance and payment of loans, the trading of gold and silver and foreign exchange, the issuance and transfer of valuable money, insurance, trust, domestic and international currency settlement, etc. Institutions engaged in financial activities mainly include banks, trust and investment companies, insurance companies, ** companies, as well as credit cooperatives, finance companies, financial leasing companies, **, gold and silver, foreign exchange exchanges, etc.

2.Features: 1).Finance is a credit transaction.

1) Credit. Credit in economics is a form of commodity trading that corresponds to spot trading (transactions settled instantly).

Credit is the foundation of finance, and finance can best reflect the principles and characteristics of credit. In a developed commodity economy, credit has become integrated with the circulation of money.

2) The proper characteristics of credit transactions.

a.One party transfers ownership of commodities (including currency) to the other party on the condition that the other party repays them, or part of the power;

b.There is a certain time lag between the prior transfer of ownership of the goods or its power by one party and the relative repayment of the other party;

c.The party that delivers first needs to bear a certain amount of credit risk, and the occurrence of credit transactions is based on giving trust to the other party.

2）.In principle, finance must be aimed at money.

3）.Financial transactions can take place between various economic components.

Finance includes banking, insurance, trust, ** and leasing.

Human beings have entered the financial era, financial society, therefore, finance is ubiquitous and has formed a huge system, finance involves a wide range of categories, branches and content, such as currency, banking, insurance, capital market, derivatives, investment and financial management, all kinds of (private placement, public offering), balance of payments, financial management, finance, real estate finance, foreign exchange management, risk management, etc.

The trend of interdisciplinary innovation and development in the field of finance is very obvious, and many eye-catching emerging marginal disciplines have emerged, such as evolutionary finance is a marginal science between biology and finance, and evolutionary science is a marginal discipline between biology and science. The financial industry is in a position that affects the whole body in the national economy, has a bearing on economic development and social stability, and plays a role in optimizing the allocation of funds and in regulating, reflecting, and supervising the economy. The unique position and inherent characteristics of the financial industry have made all countries attach great importance to the development of their own financial industry.

The financial industry has the characteristics of index, monopoly, high risk, benefit dependence and high debt operation. Indicators refer to the financial index data from all angles reflect the overall and individual situation of the national economy, and the financial industry is a barometer of the development of the national economy. On the one hand, monopoly means that the financial industry is a strictly controlled industry, and no unit or individual is allowed to open financial institutions at will without the approval of the bank.

On the other hand, it refers to the relative monopoly of specific financial business, the credit business is mainly concentrated in the four major commercial banks, the first business is mainly concentrated in the national ** companies such as Cathay Pacific, Huaxia and Nanfang, and the insurance business is mainly concentrated in PICC, Ping Bao and Taibao. High risk refers to the fact that the financial industry is the distribution center of huge funds, involving all sectors of the national economy. Any mistake in the business decision of the unit and individual can lead to a "domino effect".

Benefit dependence refers to the fact that financial efficiency depends on the overall efficiency of the national economy and is greatly affected by policies. High debt operation is a low ratio of own funds compared with general industrial and commercial enterprises.

The financial industry is in a position that affects the whole body in the national economy, has a bearing on economic development and social stability, and plays a role in optimizing the allocation of funds and in regulating, reflecting, and supervising the economy. The unique position and inherent characteristics of the financial industry have made all countries attach great importance to the development of their own financial industry.

The definition of finance is as follows:

Finance (finance, finaunce) is the economic and economic activities of market entities that use financial instruments to flow funds from the surplus side to the scarce side. Finance is a general term for monetary and financial integration. It mainly refers to various activities related to money circulation and bank credit.

The main contents include: the issuance, release, circulation and withdrawal of currency; absorption and withdrawal of various deposits; the disbursement and recovery of loans; Bank accounting, cashier, transfer, settlement, insurance, investment, trust, leasing, exchange, discount, mortgage, purchase and sale, as well as international and non-settlement between traders, trade, export, import, etc.

Develop. Finance as a discipline is growing rapidly. Over the past decade or so, there has been a surge in the number of researchers, students, methods, and models in academia and industry.

This growth and diversity is reflected in the emerging interdisciplinary and transnational academic portfolio, which is now driving the field of financial rejuvenation forward. The intellectual roots of modern finance and its branches will be reflected in the Department of Finance at Princeton and in the Cinnais.

With the vigorous development of the financial market, the popularization of financial products and financial services has undoubtedly become the main theme of the development of the financial industry in recent decades. In addition to traditional banking, insurance, and services, consumers can also purchase innovative financial products and financial derivatives such as bank wealth management products, regular investment, savings insurance, etc., and enjoy the convenience brought by credit cards and Internet financial services, which greatly facilitates consumers and increases consumers' choices.

Generally refers to all activities related to money circulation and bank credit.

Generally refers to all activities related to money circulation and bank credit. For example, currency issuance, circulation, and withdrawal, deposits, withdrawals, loan issuance, and loan recovery in credit activities, and domestic foreign exchange exchanges all belong to the scope of finance. Hold the bury boy.

Finance is also a general term for monetary financing, which can be summarized as the issuance and withdrawal of currency, the absorption and payment of deposits, and the issuance and issuance of loans.

Institutions engaged in financial activities mainly include banks, trust and investment companies, insurance companies, companies, investments, credit cooperatives, financial companies, financial asset management companies, postal savings institutions, financial leasing companies, gold and silver, foreign exchange exchanges, etc.

1. Finance refers to economic activities such as the issuance, circulation and withdrawal of currency, the issuance and recovery of loans, the deposit and withdrawal of deposits, and the exchange of foreign exchange.

Finance is the reintegration of existing resources to achieve the equivalent circulation of value and profits. (The technical saying is that the process of implementing from savings to investment can be understood in a narrow sense as a dynamic monetary economics of finance.) ）

Finance is the behavior of people making optimal allocation decisions of resources across periods in an uncertain environment.

2. The financial market refers to the operation of monetary funds.

Borrowing, foreign exchange trading.

A general term for the trading venues such as the issuance of bonds, bonds, etc., and the combination of direct financial markets and indirect financial markets together constitute the financial market as a whole. Financial markets can be classified from different perspectives: (1) According to the financing period, they can be divided into short-term financial markets and long-term financial markets.

The short-term financial market is also known as the money market.

Including bill discount market, short-term deposit and loan market, short-term bond market and lending market between financial institutions, etc.; Long-term financial markets are also known as capital markets.

Including the long-term loan market and the ** market. (2) According to the trading object, it can be divided into local currency market (including money market and capital market), foreign exchange market, ** market, ** market, etc.

The official website shall prevail.

To put it simply, finance is the financing of funds. Finance is a general term for money circulation and credit activities and related economic activities, and finance in a broad sense refers to all economic activities related to the issuance, custody, exchange, settlement, and financing of credit currency, even including the purchase and sale of gold and silver, and finance in a narrow sense refers to the financing of credit money. It refers to economic activities such as the issuance, circulation and withdrawal of currency, the issuance and recovery of loans, the deposit and withdrawal of deposits, and the exchange of exchange.

There is a detailed explanation in the entry.