What is finance?

By insurancefinances.com Updated: 28 Jan, 2019
There may be many different financial concepts, but I will present the concept of finance in the financial theory syllabus of the Academy of Finance, where I studied.

Concept: "Finance shows up as the movement of monetary capital, taking place in all subjects in society. It reflects a combination of economic relationships that arise in the distribution of financial resources through the creation or use of monetary funds to meet the different needs of actors in society. 

This financial concept gives us a comprehensive view of finance. This concept has just pointed out the specific side - the form of external expression of finance is the financial resources, the monetary funds, and the abstraction of the abstraction - the intrinsic nature of finance is the economic relations. in the distribution of financial resources, distribution of social wealth in the form of value.

To understand the above financial concept, we need to clarify some of the following terms: "Financial resources", "Monetary Fund" and "Financial relations".

Financial resources are the financial ability that social actors can exploit and use to fulfill their purposes. Financial resources can exist in the form of money, physical or non-material assets. The movement of financial resources reflects the movement of social wealth components in the form of value. Financial resources always show a certain purchasing power. The result of the distribution of financial resources is the formation and use of certain monetary funds.
What is finance

Monetary fund is a certain amount of mobilized financial resources to use for a certain purpose. Monetary funds, their formation and use have the following characteristics: 
First, monetary funds always represent ownership relations. At the end of a certain period of fund mobilization, each subject of this form of ownership or another form of ownership will receive a part of their financial resources. The use of monetary funds also depends on ownership as well as depending on the conventions, principles of fund use, subjective will of the owner during the distribution process. 
Second, monetary funds always show purpose. This is a key feature of the monetary fund. Most monetary funds have the end use purpose of accumulation or consumption.
Third, all monetary funds are active, ie they are always used and supplemented.

Financial relations are economic relations between subjects in society in the distribution of financial resources, the process of distribution of social wealth in the form of value.

I hope that with what I have shown above will help people have a full view of financial concepts.