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Finance is the Science of funds management. The general areas of Finance are Business Finance, Personal Finance and Public Finance. Finance includes saving money and often includes lending money. The field of finance deals with the concepts of time, money, risk and how they are interrelated. It also deals with how money is spent and budgeted.
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This field of Finance is related to the country, municipality, school, state etc. Public finance aims at long term goals rather than a short term goals. It is used by government to maintain the economy of the country. Taxation is also a major portion of public finance. Hence, any financial decision that can affect public is rooted under this area of Finance.
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Public Finance and Private Finance are just two terms which include lots more in them. The private equity and the Mutual Funds market all run on this concept. Financial assets like stocks, bonds and bank deposits are assets which derive value due to the contractual claim on them. They do not necessarily have physical worth but do certainly have a monetary gain by the holder. A financial intermediary is an institution or person who plays the role to channel funds between the surplus and deficit areas. These financial services that the financial institutions and the intermediaries provide in a nutshell control the entire financial market and money flow overall. One needs to know all these terms and their relations in a perfect manner to begin with. Also, the concepts have to be laid in a correct manner in order to be able to solve complex problems in the future.
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