Difference Between Finance And Economics
The main dissimilarities or difference between finance and economics can be pointed as follows:
1. Definition
Finance: Science of allocating, managing, and controlling assets and funds in proper manner
Economics: Social science that studies the management of goods and services (production, distribution and consumption) and optimum allocation of limited resources to meet human needs.
2. Nature
Finance: It is specific in nature
Economic: It is theoretical in nature
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3. Focus
Finance: It focuses on management of fund in order to maximize wealth
Economics: It focuses on effective utilization of resources in order to fulfill human needs
4. Classification
Finance: It can be classified into personal finance, corporate finance and state finance
Economics: It can be classified into microeconomics and macroeconomics
Finance Vs Economics (Comparison Chart)
Summary
Differences between finance and economics can be summarized as follows:
Finance is proper allocation and management of funds and assets in order to maximize profit.Economics is proper production and distribution of goods and services by utilizing the resources in order to fulfill human needs. Finance is more specific than economics because economics is theoretical by nature. Finance gives emphasis on management of assets or funds but economics gives emphasis on efficient employment of resources. Personal finance, corporate finance, state finance etc. are some branches of finance. Microeconomics and macroeconomics are the branches of economics.
I hope this post is helpful to understand the difference between finance and economics and make comparison between them.
Finance Vs Economics (Comparison Chart)
Basis For Difference
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Finance
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Economics
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Introduction
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Proper allocation, management and control of funds
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Study of management of goods and allocation of available resources
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It Is
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Science
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Social Science
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Nature
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Specific
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Theoretical
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Focus
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Fund management
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Proper utilization of limited resources
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Branch
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Personal finance, corporate finance and state finance
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Microeconomics and macroeconomics
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Summary
Differences between finance and economics can be summarized as follows:
Finance is proper allocation and management of funds and assets in order to maximize profit.Economics is proper production and distribution of goods and services by utilizing the resources in order to fulfill human needs. Finance is more specific than economics because economics is theoretical by nature. Finance gives emphasis on management of assets or funds but economics gives emphasis on efficient employment of resources. Personal finance, corporate finance, state finance etc. are some branches of finance. Microeconomics and macroeconomics are the branches of economics.
I hope this post is helpful to understand the difference between finance and economics and make comparison between them.
