1 has different meanings.

Finance refers to the issuance, circulation and withdrawal of money, the issuance and recovery of loans, the deposit and withdrawal, the exchange of foreign exchange and other economic activities. It is to realize the equivalent circulation of value and profit after the re-integration of existing resources. Finance is the behavior that people make decisions on the optimal allocation of resources in an uncertain environment.

Economy is the creation, transformation and realization of value; Human economic activities are activities that create, transform and realize value and meet the needs of human material and cultural life. Economy is the management of materials, and it is the general name of the whole dynamic phenomenon of people producing, using, processing and distributing all materials.

This concept refers to the domestic management of a family at the micro level and the national economy of a country at the macro level. In this dynamic whole, it includes human production, savings, exchange and distribution activities. Production is the foundation of this dynamic, and distribution is the end of this dynamic.

Trade refers to the general name of buying, selling or trading, and usually refers to all exchange activities or behaviors with money as the medium. Its scope of activities includes not only the commodity exchange activities engaged by merchants, but also the commodity trading activities organized by commodity producers or others; Not only domestic trade, but also international trade between countries.

In ancient markets, there were not only material goods transactions, but also slave transactions. In the modern market, in addition to tangible commodity trade, there are intangible trade activities such as technology, capital, information, labor services, insurance and tourism.

2, the scope is different

Trade and finance are only a small part of economics. If the economy is compared to the human body, finance is the blood of the economy. Including banking, securities, insurance, investment and other related aspects. The quality of the economy can be judged from the situation of the financial market. The economy needs the circulation of finance to absorb nutrition and gain the motive force of operation.

Economics includes a large number of majors, finance, insurance, statistics, international economy and trade, etc. Finance is a branch of economics, and many of its analyses are based on economics. Economics is partial to theoretical research, and finance is more applied. Finance studies the functional symbols of transaction variables such as money and capital. Economics studies the whole society except the above parts.

3. Different emphases

Economics focuses on theory, while finance focuses on application. Generally speaking, finance is a practical subject to study stocks, bonds and futures, while economics focuses on theoretical knowledge such as supply, demand, economic development and consumer theory.

And the core of trade is exchange. Exchange is the unity of the two opposing processes of delivery and payment. Between the normal subjects of freedom and equality, the exchange follows the principle of reciprocity and synchronization. Synchronous exchange means that delivery and payment are mutually conditional and are the guarantee of equivalent exchange.

Extended data:

Finance has five elements:

1. Financial object: currency (funds). The currency circulation regulated by the monetary system has the characteristics of prepayment, turnover and appreciation.

2. Financial model: represented by the credit model of lending. The trading objects in the financial market are generally written proof of credit relationship, contract documents of creditor's rights and debts, etc. Including direct financing: no intermediary intervention. Indirect financing: financing realized through the intermediary role of intermediary institutions.

3. Financial institutions: usually divided into banks and non-bank financial institutions.

4. Financial place: financial market, including capital market, money market, foreign exchange market, insurance market, derivative financial instrument market, etc.

5. System and control mechanism: supervise and control financial activities.

Relationship between elements: Generally speaking, each element is relatively independent and interrelated. Financial objects and financial places are the hardware elements of the financial system, financial methods, systems and supervision mechanisms are the software elements of the financial system, and financial institutions are its comprehensive elements.

Specifically, financial activities generally take credit instruments as the carrier, and through the transaction of credit instruments, they play a role in the financial market, realizing the transfer of the right to use monetary funds, in which the financial system and regulation mechanism play a supervisory and regulatory role.

References:

Baidu encyclopedia-finance