What is financial?
Finance is the science of funds management.
Then, what's the relationship bewteen financial and economy? What could we do to increase our nation's financial?
We all know that financial intermediary have been relatively independent economic activity, it's no longer the initial exchange of commodities, gradually, it becomes a means of economic. On the one hand, financial growth can be improved by many kinds of means. Such as through the promotion of savings and investment, optimize the allocation of resources, facilitate the exchange and other activities and so on. Therefore, to promote economic growth needs all human being's efforts; on the other hand, the existence of financial risk and unreasonable delay of economic growth can also foster the development of financial. Therefore, we should promote economic finance through rational way. Only do these, the development of developing countries, such as China, can develop the economy and ensure supply, and also suppress the side effects. So it is particularly important for developing countries.
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Finance is the integration of monetary and credit, it is the the product of commodity exchange and the market economy. In the process of economic development, monetary exchange of commodities which is by the medium of currency, have broken the constraints in time or space at direct barter in buyers and sellers. Then the development of credit, which is exchange for money and goods made the constraints in time and space to further liberalization,which made the exchange market continously existed after the ownership tranfered the goods or money. On the other words, even if the two sides transfered the money, the trade was still existed, it could gradually became a special trade. Thus, there was independent from the circulation of commodities out of a special commodity - capital, the financial system began to have the real meaning. Since then, financial instruments gradually developed the currency commercial paper, stocks and bonds and other forms of funds from a single currency,, Then, the general areas of finance became business finance, personal finance, and public finance. Finance includes saving money and often includes lending money. The field of finance deals with the concepts of time, money and risk and how they are interrelated. It also deals with how money is spent and budgeted. So, I can say our world is progressing.
The functions of financial to economiy are:
Financial can promote economic growth
When the financial development is a healthy and effective one, it actively promotes the economic development.
Financial can develop the block economic.
