FIN111 - Introductory Principles of Finance - Accounting and Finance Assignment Help

Assignment Task

1.1 UNDERSTANDING FINANCE, MONEY AND MARKETS

MONEY: Is simply a means of exchanging value between parties.

MARKETS: Are required to facilitate buyers and sellers interacting, agreeing on the terms of a transaction and executing that transaction.

FINANCE: Refers to both the study of how money is managed and the process of acquiring money.

FINANCE IN SOCIETY

The importance of finance in society is driven by the economic principle of scarcity.

A key task of the financial system is to ensure this scare resource is used efficiently.

The Financial system:

• Evolves overtime as the economy develops, regulation changes, technology advances and is also complex.

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