What is finance simple and understandable language? Finance - is a multifaceted concept that includes both cash and non-cash resources, and other forms of instruments and funds, as well as - financial relationships related to the calculations of funds between market players.
In its simplest form the definition of finance is as follows: finance - is money. It is no wonder that they say: "Finance sing songs" - and everybody understands that we are talking about lack of money.
But this is too simple, primitive definition of finance. Because finances - it's not only cash, and cash in bank accounts and checks, and letters of credit and other financial instruments.
Actually the word "finance" comes from the Latin «financia» and transferred as cash, income. If, however, to translate the word «finances» from the French language, the finance - it's money.
In general, the concept of finance includes the totality of Finance (financial aggregators M1, M2, ...) in a particular country or around the world in all its forms and stages: at the time of their creation and movement from one person to another (for example, finance the purchase of grain flow from the pocket of the buyer the seller in cash), as well as in their distribution (eg, in the state budget or the budget for different types of company expenses) and redistribution (re-distribution of funds), the use of finance (for goods).
Specifically, the notion of Finance consists of not only the money card accounts at banks, and insurance policies, real estate, airplanes, factories, enterprises, because they all represent a certain monetary value that can be converted into funds for their implementation.
The ability of the material objects quickly sold at a bargain price is called the liquidity of financial instruments. For example, the property in times of crisis has low liquidity - for selling it, but still at a high price, very difficult. But the money - the most marketable commodity. Although this national currencies of Zambia is less liquid product than U.S. dollars or euros.
What is finance in the national economy of a country? Finance - This is the blood of the state, which delivers the nutrients to "blood vessels" - with the help of the banking system to all stakeholders of the financial system - ordinary citizens (individuals), companies, institutions and organizations, firms, companies (legal persons), state in the face numerous state-financed organizations. Thus, finance - all those funds that are available in a particular state, company, or a citizen. The concept of finance is closely linked with the concept of the budget: a state budget, the company budget, family budget, personal budget. On how the entity manages its own budget, depends on its level of financial income, expenditure and financial success. If the subject of financial relations allocates its finances unwisely, can not save a "different baskets" did not provide a permanent source of financial income, it is likely that he will become bankrupt. Definition of Finance, in addition to the budget, is also inextricably linked with the concepts of income and expenses. That the budget was in surplus, ie - Profitable, revenue must be greater than costs. Credit - a major component of finance, which allows you to reallocate funds among the various actors of financial relations. For example, older people it is biased to save money, save them in the banks are not deposits.
Young people and entrepreneurs always have great need of money and finance, so they take money on credit from banks, and banks in these financial relationships act as intermediaries - they earn on the difference between the interest rate, which is obtained from its borrower on the loan and interest rate they pay their depositors from the deposit.
In its simplest form the definition of finance is as follows: finance - is money. It is no wonder that they say: "Finance sing songs" - and everybody understands that we are talking about lack of money.
But this is too simple, primitive definition of finance. Because finances - it's not only cash, and cash in bank accounts and checks, and letters of credit and other financial instruments.
Actually the word "finance" comes from the Latin «financia» and transferred as cash, income. If, however, to translate the word «finances» from the French language, the finance - it's money.
In general, the concept of finance includes the totality of Finance (financial aggregators M1, M2, ...) in a particular country or around the world in all its forms and stages: at the time of their creation and movement from one person to another (for example, finance the purchase of grain flow from the pocket of the buyer the seller in cash), as well as in their distribution (eg, in the state budget or the budget for different types of company expenses) and redistribution (re-distribution of funds), the use of finance (for goods).
Specifically, the notion of Finance consists of not only the money card accounts at banks, and insurance policies, real estate, airplanes, factories, enterprises, because they all represent a certain monetary value that can be converted into funds for their implementation.
The ability of the material objects quickly sold at a bargain price is called the liquidity of financial instruments. For example, the property in times of crisis has low liquidity - for selling it, but still at a high price, very difficult. But the money - the most marketable commodity. Although this national currencies of Zambia is less liquid product than U.S. dollars or euros.
What is finance in the national economy of a country? Finance - This is the blood of the state, which delivers the nutrients to "blood vessels" - with the help of the banking system to all stakeholders of the financial system - ordinary citizens (individuals), companies, institutions and organizations, firms, companies (legal persons), state in the face numerous state-financed organizations. Thus, finance - all those funds that are available in a particular state, company, or a citizen. The concept of finance is closely linked with the concept of the budget: a state budget, the company budget, family budget, personal budget. On how the entity manages its own budget, depends on its level of financial income, expenditure and financial success. If the subject of financial relations allocates its finances unwisely, can not save a "different baskets" did not provide a permanent source of financial income, it is likely that he will become bankrupt. Definition of Finance, in addition to the budget, is also inextricably linked with the concepts of income and expenses. That the budget was in surplus, ie - Profitable, revenue must be greater than costs. Credit - a major component of finance, which allows you to reallocate funds among the various actors of financial relations. For example, older people it is biased to save money, save them in the banks are not deposits.
Young people and entrepreneurs always have great need of money and finance, so they take money on credit from banks, and banks in these financial relationships act as intermediaries - they earn on the difference between the interest rate, which is obtained from its borrower on the loan and interest rate they pay their depositors from the deposit.
