What is Economics

Economics is the study of the production and consumption of goods and the transfer of wealth to produce and obtain those goods. Economics explains how people interact within markets to get what they want or accomplish certain goals. Since economics is a driving force of human interaction, studying it often reveals why people and governments behave in particular ways.

borrowers and lenders .Types of Economics Microeconomics It focuses on the actions of individuals and industries. like the dynamics between buyers and sellers.

.Macroeconomics on the other hand. takes a much broader view by analyzing the economic activity of an entire country or the international marketplace.

.What is Economics of Finance This is the branch of economics concerned with "the allocation and deployment of economic resources. in an uncertain environment".

. "Finance" is often defined simply as the management of money or funds management. ment. matters related to money and the markets. ment. finance deals with markets.What is Finance? A branch of economics concerned with resource allocation as well as resource management. Financial Management deals with procurement of funds and their effective utilisation in the business. acquisition and invest management. Simply.

There are two basic aspects of Financial management: Procurement of Funds and Effective Utilization of these funds. .

OBJECTIVES OF FINANCIAL MANAGEMENT 1. Profit Maximisation 2 Wealth Maximisation .

FUNCTIONS OF FINANCE MANAGER Estimating the requirement of Funds Decision regarding Capital Structure Investment Decision Dividend Decision Evaluating Financial Performance Financial Negotiation .

Bonds Loan from Financial Institution Loan from Commercial Banks International Financing . 7. 6. 2. 4. 3. Share Capital or Equity Share Preference Share Retained Earnings Debentures.SOURCES OF FINANCE 1. 5.

Public Deposits Lease Financing Trade Credits Advances from Customers According to Sources 1. Internal Sources 2. Eternal Sources .

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