Finance is a field that deals with the study of
investments. It includes the dynamics of
assets and
liabilities over time under conditions of different degrees of uncertainty and risk. Finance can also be defined as the science of money management. A key point in finance is the
time value of money, which states that purchasing power of one unit of currency can vary over time. Finance aims to price assets based on their risk level and their expected
rate of return. Finance can be broken into three different sub-categories:
public finance,
corporate finance and
personal finance.
