Financial economics is one of the branches of economics that focuses on money.

It
was a crossroads between financial studies, financial markets and economics. In
other words, this study gives greater attention to the monetary side of an economy. 

Some of the basic knowledge you need to learn financial economics are:

 Microeconomics
 Accounting
 Basic probabilities and statistics,

For the latter, it is important to measure and evaluate the rate of return and risk.

This field of study is important to you because it provides a knowledge base for
making decisions about money. You will learn a lot about:

 Options for allocating money

 Calculate returns and risks from money allocation
 Risk factors inherent in each allocation
 Fair value of the asset you want to acquire

Differences between financial economics and

economics
In economics, goods and services become the object of transactions. I mean, supply
and demand is for goods and services. Money only acts as a means of payment and
only arises from one party when the other party hands over goods or provides
services.

But, in the study of financial economics, money is as the object of demand and
supply. Meanwhile, interest represents the price of money. Furthermore, you may
often find broader terms of money, such as capital, cash, funds, and financial capital.

The money supply comes not only from the business sector, but also from the
household (individual) and government sectors. For fund suppliers, interest is a
return when they lend money. The term money supplier can take a variety of terms
such as investor, bondholder, shareholder, lender and lender.
Furthermore, the demand for money comes from the three sectors (individuals,
businesses, and governments). Individuals borrow for some expenses such as buying
a house and paying for an education. The company borrows to buy capital
equipment or as working capital. The government borrowed money to close the
budget deficit.

Financial economy topics

The financial economy concentrates on decision-making based on two main
considerations: risk and returns. The subject is usually applied to investment
decisions, especially in financial markets such as the stock market, foreign exchange
market and bond market. It became an increasingly important discipline, taking into
account the growing contribution of financial markets to the economy.

In this field of study you learn about making investment decisions, identifying risks,
and assessing securities and other financial assets. You'll also learn how economic
indicators such as inflation and interest rates impact financial assets.

An analysis of the fair value of an asset and and the amount of cash that can be made
from an asset is another chapter of the study of financial economics.