"Finance" Introduction to the definition, function, structure and learning methods of finance

"Finance" Introduction to the definition, function, structure and learning methods of finance

Preface

Finance, financing, is the redistribution of resources. The core is currency, and the relationship between borrowing and lending is established by credit, a subject that focuses on saving and borrowing money.

Notes on Finance (Lesson 1) . I originally planned to write notes according to the class, but the teacher lectures are mostly casual, sometimes speaking less, sometimes in advance, which is not conducive to systematically writing notes. So first write notes in accordance with the book in advance.

Reference Course: "Finance" by Cao Longqi (Fifth Edition)

The content is summarized according to the knowledge structure, with occasional supplementary understanding.

introduction

Definition of Finance

In the 1930s, the word "finance" first appeared in Monetary Science and mentioned financial panic, etc.

The Great Depression of 1929-1931 was the first economic crisis.

Western countries' interpretation of finance: finance, originally meant to settle loans.

Marx's evaluation of finance: currency is the first and final driving force.

Comrade Deng Xiaoping said in the spring of 1991: Finance is very important and is the core of modern economy.

I think finance can be explained in many ways. The simplest explanation is the reallocation of resources. The more vivid explanation is to save money and borrow money.

In the early stage of capital, there was a problem. The fund-abundant units had spare money, but they wanted to find a place to invest, but they could not find it; the fund-short units were short of money, but could not immediately raise a large amount of funds.

At this time, there is a large and respected bank. It tells wealthy companies that your money is idle and you are idle. It is better to give me the idle money and I will give you interest. A wealthy unit can think about it, but I can’t think of where to invest anyway. I don’t want to invest in small industries. You can still be trustworthy as a rich man. You don’t worry about not paying back the money, so I give the money to the rich man (financial Institutions, such as banks). Then the rich man said to other people who had good projects to raise money that he wanted money, but interest. Units that are short of funds pay interest whenever they think about interest. I earn more and borrow some money first. So he borrowed money (bank) from the rich man.

In this way, finance was formed.

A century of financial revolution

The strategic position of modern finance has improved

Brought by economic globalization, promoted by technology

Finance and economy are mutually infiltrated, and each other is cause and effect

I think finance belongs to the economic category, but with the development of human society, it has gradually formed a big piece, so it is independent from the economy. Economy governs the producer theory, and finance governs currency. (A bit one-sided)

Financial innovation is emerging one after another, financial supervision is becoming more difficult

There are pros and cons, but you can't give up on choking. At the same time, it is precisely because of innovation that new talents have opportunities.

The financial system is becoming larger and more complex

From the perspective of organizational structure, the three groups of banking, securities and insurance are vigorous.

The Frame Structure of Modern "Finance"

Introduction: Introduction to the history of finance, the basic content of finance, and ways to learn finance

Part I: Financial category. Talk about currency and monetary system, credit, interest and interest rate, foreign exchange and exchange rate

Part II: Financial Markets and Financial Institutions. Financial markets, financial institutions, commercial banks (important participants in financial markets), central banks (national financial regulatory authorities)

Part Two: Financial Macro Control. Money demand, money supply, monetary equilibrium, inflation and deflation, monetary policy regulation, financial development, financial innovation and financial risks.

The logical relationship is:

Currency is the essential element of finance; relying on credit, there is credit for interest; international currency payments will inevitably involve foreign exchange and exchange rate issues;

Relying on financial markets and financial institutions, financial activities such as currency fund movements, credit interest rates and foreign exchange rates can operate normally.

In the final analysis, the entire financial activity is a question of how to determine a reasonable amount of money supply and demand.

Positioning of modern financial industry

Judging from the tremendous changes in financial functions at the turn of the century, the concepts and definitions of traditional finance are outdated.

It is obviously related to the development of computers and the Internet. The Internet has made long-distance communication simple, and regional connections have become closer, economic exchanges have become more frequent, and financial development has changed with each passing day.

But no matter how you change it, you just save money and borrow money.

Study Methods of Finance

The textbook was over two pages, but I did not transcribe a word. So simply talk about how you think you learn about finance.

First of all, this is the discipline of saving money and borrowing money. We study around these two points. How to save money, how to borrow money.

To save money, you need to make arrangements for savings, funds, stocks, and insurance. It is also financial management in a popular sense; financial management tools include protection (cash planning, insurance planning), value preservation (monetary funds, treasury bonds), and appreciation (bonds, funds, stocks, real estate, foreign exchange, and artworks). For details, please refer to the notes I wrote in my junior year. "Macroeconomics Everyone Knows" Notes and "Simplified Seven Financial Management" notes .

To borrow money, it means borrowing money from family and friends, borrowing from a bank, crowdfunding, and going public.

Obviously, saving money and borrowing money are our financial activities. To do well in these financial activities, you can study finance well.

end

The content of the next issue is the beginning of the first part of finance-the financial category. Talk about currency and currency system, credit, interest and interest rate, foreign exchange and currency part of exchange rate

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