Types of Finance and Financial Services

Understanding money management and how needed

funds are acquired
By 
DANIEL KURT
 

Updated May 08, 2022

Reviewed by 
NATALYA YASHINA

Fact checked by 

SKYLAR CLARINE
Finance is a broad term that describes activities associated with
banking, leverage or debt, credit, capital markets, money, and
investments.

Essentially, finance represents money management and the process of

acquiring needed funds. Finance also encompasses the oversight,
creation, and study of money, banking, credit, investments, assets, and
liabilities that make up financial systems.1

Many of the basic concepts in finance originate

from microeconomic and macroeconomic theories. One of the most
fundamental theories is the time value of money, which states that a dollar
today is worth more than a dollar in the future.

KEY TAKEAWAYS
  Finance encompasses banking, leverage or debt, credit, capital
markets, money, investments, and the creation and oversight of
financial systems.
 Basic financial concepts are based on microeconomic and
macroeconomic theories. 
 The finance field includes three main subcategories: personal
finance, corporate finance, and public (government) finance.
 Consumers and businesses use financial services to acquire
financial goods and achieve financial goals.
 The financial services sector is a primary driver of a nation’s
economy.
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Finance

Types of Finance
Individuals, businesses, and government entities all need funding to
operate. Therefore, the finance field includes three main subcategories:

 Personal finance