Question

Book Name: Principles of Managerial Finance - 180 Day Option, 14th Edition

Define the term finance and explain how unemployment, minimum wage, stock markets and our economy as a whole affected the people? How people could benefit their career from doing finance as a whole?

Answer 1

Finance is basically the study of how the exchange of value takes place across individuals and corporations. Also fiat money is often used as a proxy for value and finance tells us about various asset classes and how money can be invested across these asset classes to generate returns.

Unemployment in an economy is a problem as it lowers the productivity of the population and reduces economy's potential. It also reduces scope for growth. Minimum wage is a kind of protection which is accorded to people by the government and workers are assured of a minimum income if they provide services.

Stock market is a place where shares of listed entities are traded and it helps in price discovery. It is a good barometer to predict the health of the economy.

People can benefit from pursuing finance as a career as they can then shape investment decisions of the corporations which ultimately decide on growth of economy. Moreover they can then also decide on personal investments in a better manner.