If you look in the English dictionary, the world Finance has multiple meanings. It is basically attributed to the matters that are concerned with money. Financial matters mostly deals with issues that can be valued in terms of money. There are other aspects of Finance that changes its meaning. For instance, financing a car or a house means taking a loan or lending money. More or less, we can say that finance word deals with money on money’s worth. If you would like to know more about it, then read this article and get some useful information on this subject.
Money is an important part of our life. Most of the things that are needed by us can be bought or valued in terms of money. So if you would like to buy something or sell something, you would require an understanding towards money and by it, you would be able to value a particular thing.
All the things, that are related directly or indirectly to money comes under finance. In order to understand the game of Finance, you should understand the concept of money. There was a time when there was no money and barter system was applied. In that case, people used to get together with all those things that they had and exchange it for the things that they would like to have. For example, if you had a pen and you would like to have a bread, then you should look out for a person who has bread and is looking out for pen. So this concept was basically meant for mutual exchange and satisfaction. However, there was some flaw in this concept because there were two identically different things in the offering. Hence currency came into practice, in which a common currency was used to value both pen and bread. Depending on the market situation and other simple and complex factors, each of the things is being valued with a certain amount of money and has a certain amount of currency for which it could be exchanged. These rates keep on changing as per the requirement and with times.
This is the basic concept of money. If you understand this, then you will not take much time to understand the world of Finance. Money basically is needed to get or buy things that satisfy us. Most of the materialistic things have some sort of price tag on them that could be valued in terms of money and currency.