|
Finance is nothing but an exchange of available resources. Finance is not
restricted only to the exchange and/or
management of
money. A barter trading system is also a type of finance. Thus, we can say,
Finance is an art of managing various available resources like money, assets,
investments, securities, etc.
At present, we cannot imagine a world without Finance. In other words, Finance
is the soul of our economic activities. To perform any economic activity, we
need certain resources, which are to be pooled in terms of money (i.e. in the
form of currency notes, other valuables, etc.). Finance is a prerequisite for
obtaining physical resources, which are needed to perform productive activities
and carrying
business operations such as sales, pay compensations, reserve for
contingencies (unascertained liabilities)and so on
Hence, Finance has now become an organic function and inseparable part of our
day-to-day lives. Today, it has become a word which we often encounter on our
daily basis
|