Finance is the jewel in the crown of economics.
Economics involves all aspects of social life, such as food, clothing, housing and transportation, and daily necessities.
Distribution of all scarce materials, such as water, oil, food, etc.
Production activities, consumption activities
Finance only cares about one thing: money.
Its flow, proliferation, storage and function in life.
What is the difference between finance and economics? What are the differences and connections between economics and finance? Generally speaking, we are used to dividing economics into two first-class disciplines: theoretical economics and applied economics. Finance is often divided into applied economics, which is two disciplines. It is generally believed that economics is the foundation of finance, and finance is the concrete application of economics in financial markets.
1. Economics is to solve how to balance the two in the case of "limited material resources and endless human desires". It can be seen that economics is more of a macro and social science. In many universities in the United States, the economics department is placed under the Academy of Social Sciences, not the business school (b this means that some universities can not take the gmat). The basic models of macroeconomics and microeconomics are all based on the "demand-supply" model, and their structures are simpler than those in finance. In the later stage, we need to rely on econometric methods to prove the macro-relationship proposed by these models, otherwise it will be just castles in the air.
2. Finance is to solve the problem of how to improve the income or reduce the risk under certain conditions in the case of "the greater the income, the greater the risk". It can be seen that the perspective of finance is more microscopic than economics, and finance must be in business schools. There are many main disciplines of finance, but the goal of learning is nothing more than how to measure whether the income of a portfolio or a financial product matches the risks it brings, so as to find opportunities for investment and even speculation. The basic models used in finance are very complex, ranging from simple (such as the identity of assets = liabilities+equity and a series of income formulas) to complex, such as the most basic CAPM.
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They are both external and internal, complementary and inseparable. Undergraduate students majoring in economics will definitely study financial management courses, and undergraduate students majoring in finance will definitely study macro and micro economics.
What is the difference between economics and finance? Economics is like studying essence, looking at the law through phenomena and understanding the origin of things.
Finance is like using these phenomena to activate the market and the world.
The former is more theoretical and the latter is more pragmatic.
The former is more scientific and the latter is more operational.
What is the difference between economics and finance? Economics is a modern independent discipline, which studies how a society uses scarce resources to produce valuable goods and services and distribute them among different people. Economics mainly considers three points: the scarcity of resources is the premise of economic analysis; Choice behavior is the object of economic analysis; The effective allocation of resources is the central goal of economic analysis. Its primary task is to use the limited earth resources to develop the commodities needed by human beings and their reasonable distribution as much as possible, that is, productivity and production relations.
Economics is a first-class discipline in China, which is divided into two two disciplines: theoretical economics and applied economics. Finance is a major in applied economics.
Finance is a subject that focuses on the economic activities of money and monetary funds, and specializes in how individuals, institutions and * * * acquire, spend and manage funds and other financial assets. It is a discipline differentiated from economics.
Studying in America: What's the difference between economics and finance? At the undergraduate level, economics and finance are two different majors. Economics belongs to theoretical economics and finance belongs to applied economics. Intuitively speaking, economics is a discipline that studies the law of overall economic development, and finance is a discipline that studies financial intermediaries.
What is the difference between economics and finance? The former includes the latter.
Let's take a look at their concepts:
Economics is a social science that studies human behavior and how to rationally allocate limited or scarce resources.
Finance is a branch of economics, which studies how companies, individuals, companies and other institutions raise and invest funds. The traditional research field of finance has two directions: macro-level financial market operation theory and micro-level enterprise investment theory.
Conceptually, there is a great difference between them in knowledge.
Three years ago, I learned that the "technical economics" major of Sun Yat-sen University is a famous major in domestic universities. However, if you want to specialize in finance, I suggest you choose finance directly; If you want to take the postgraduate entrance examination in the future (including cross-disciplinary examination), I suggest you choose economics.
Personally, I prefer economics. Bernard Shaw said: "Economics is the art of making life happy!" Moreover, the knowledge learned in economics is much richer than that in finance, but it is also more difficult.
Finance mainly focuses on financial markets and corporate financing; It involves banks, stocks, funds, financial derivatives and other knowledge, which is professional and targeted, but the knowledge is not very wide and the difficulty is not light.
However, if you choose Sun Yat-sen University, I suggest you choose economics. If you choose finance, I suggest you choose other institutions, such as Central University of Finance and Economics, Dongbei University of Finance and Economics and other financial institutions.
The above only represents personal views! I hope you make a rational and comprehensive choice! I wish you success in your studies! Have a wonderful four-year college life!
There is a very important difference. Finance is a subject that studies the economic activities of financing money and monetary funds. In economic life, credit and currency circulation are inseparable. It is the basic content of finance to closely link credit and currency circulation, and to study their respective laws of movement, their position and role in economic life, and their mutual restriction with other economic categories. The content of finance is extremely rich, which is not limited to the study of financial theory, but also includes the separate and comparative study of financial history, financial theory history, contemporary financial theory in the East and the West, financial systems and financial policies in various countries. Theories such as trust and insurance also belong to the scope of financial research. The main topics of financial theory are: the essence, function, position and function of money; The form of credit, the functions of banks, their status and role; The nature and function of interest; Characteristics and laws of modern currency circulation. Business training objectives of economics major: Business training objectives: This major trains senior professionals who have a solid theoretical foundation of Marxist economics, are familiar with modern western economic theories, master modern economic analysis methods, have a wide range of knowledge, have the ability to expand and penetrate into relevant fields of economics, and can engage in economic analysis, forecasting, planning and economic management in comprehensive economic management departments, policy research departments, financial institutions and enterprises. Business training requirements: this major requires students to systematically master the basic theory of economics and related basic professional knowledge, understand the operating mechanism of market economy, be familiar with the economic principles, policies and regulations of the party and the country, and understand the history and present situation of economic development at home and abroad; Understand the academic trends of economics; Have the ability to conduct socio-economic investigation, economic analysis and practical operation by using quantitative analysis methods and modern technical means; Professionals with strong written and oral expression skills can master a foreign language skillfully. Graduates should have the following knowledge and abilities: 1. Master the basic theories and analytical methods of Marxist economics and contemporary western economics; 2. Master modern economic analysis methods and computer application skills; 3. Understand the academic trends and application prospects of Chinese and foreign economics; 4. Understand China's economic system reform and economic development; 5. Be familiar with the economic principles, policies and regulations of the Party and the country; 6 master the basic methods of Chinese and foreign economic literature retrieval and data query, and have certain economic research and practical work ability.
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In a broader sense, finance belongs to the field of economic research, and finance is to study the economic activities in the financial currency circulation market (such as futures, stocks, bonds, insurance banks, venture capital, etc.). ) The major of general economics seen in universities is mainly academic research, covering a wide range, so it is generally not aimed at specific and practical economic disciplines. However, many new branches of economics have been derived from the basic theoretical research of economics, such as information economics, environmental economics (non-market analysis method is a very important extension) and so on.
On the other hand, finance originated from economics, but now it has been relatively independent from economics and has a relatively systematic research method. At the same time, modern finance still stays in the framework of neoclassical analysis of modern economics. Its characteristic is to start with the rational behavior of micro-subjects (behavioral finance also considers irrational behavior, such as anchoring effect) and build a market equilibrium system considering time and uncertain factors. Explore the mechanism and function of financial system in intertemporal resource allocation. Finance has created a unique research method in economics, such as arbitrage-free analysis, which is commonly used in the pricing of financial assets. This method is actually more specific than supply and demand analysis in economics and easier to realize in the market. In addition, it is very important that the concept of expectation of neoclassical economics development has been well applied in finance. Finance considers the random factors in the market, so the expectations of market participants play an important role in it and depend on numbers.
From a procedural point of view:
1, foreign universities have various master's programs related to finance, but they are all applied and the courses are not consistent. Most of these projects are in business schools and tend to be empirical analysis. The economics department rarely offers similar projects, although there are some. Some master's programs train professionals who can carry out technical analysis, so they require higher mathematics application ability. Such as data processing, statistical analysis, more advanced software and so on. The specific content depends on the introduction of specific projects offered by specific schools and their curriculum structure.
2. Doctoral program. Business schools of some foreign universities will train doctors in finance. But most economics departments can train doctors in finance, although the name may be a doctor in economics. Financial economics, financial metrology, these project courses are both mathematical and physical, and macro finance, such as international finance, is often classified as macroeconomic research.
Finally, corporate finance, which means a little overlapping, may also be called corporate finance. Many things involving finance and management.
I can't say it clearly here because my personal understanding is limited. You can refer to three articles by Professor Qian Yingyi. Besides, every school curriculum is biased. Please read it carefully before applying. Although they are all called finance, their contents can vary widely.
Economics major
Main subject: Economics.
Main courses: political economy, capital, western economics, accounting, statistics, econometrics, international economics, monetary banking, finance, history of economic theory, development economics, enterprise management, marketing, international finance, international trade, etc.
Career orientation: a professional who can engage in economic analysis, forecasting, planning and economic management in comprehensive economic management departments, policy research departments, financial institutions and enterprises.
Finance major
Training objectives: This major trains professionals who have theoretical knowledge and business skills in finance and can engage in related work in economic management departments and enterprises such as banking, securities, investment and insurance.
Training requirements: Students in this major mainly study basic theories and knowledge such as monetary banking, international finance, securities, investment and insurance. I have received basic training in related businesses and have the basic ability of practical work in the financial field.
Graduates should have the following knowledge and abilities:
1. Master the basic theory and knowledge of finance;
2. Have the basic ability to handle banking, securities, investment and insurance;
3. Familiar with national financial policies, policies and regulations;
4. Understand the theoretical frontier and development trend of this discipline;
5. Master the basic methods of literature retrieval and information query, and have certain scientific research and practical work ability.
Main course:
Main subject: Economics.
Main courses: political economy, western economics, finance, international economics, monetary banking, international financial management, securities investment, insurance, commercial bank management, central banking, investment banking theory and practice, etc.
Finance originated from economics, but now it has become an independent discipline with its own research methods. Modern finance, like economics, starts with the rational behavior of micro-subjects (behavioral finance considers irrational behavior), constructs a market equilibrium system considering time and uncertain factors, and investigates the mechanism and role of the financial system in the intertemporal allocation of resources. But finance is different from economics. For example, the non-arbitrage analysis commonly used in financial asset pricing is actually more general than the supply-demand pricing analysis in economics and easier to realize in the market. Another difference between finance and economics is that the former considers random factors in the market, so the expectations of market participants play an important role in it. The concept of economy is much broader than that of finance.
Finance is a small branch of the economy, but each has its own emphasis.
In a broader sense, finance belongs to the field of economic research, and finance is to study the economic activities in the financial currency circulation market (such as futures, stocks, bonds, insurance banks, venture capital, etc.). ) The major of general economics seen in universities is mainly academic research, covering a wide range, so it is generally not aimed at specific and practical economic disciplines. However, many new branches of economics have been derived from the basic theoretical research of economics, such as information economics, environmental economics (non-market analysis method is a very important extension) and so on.
On the other hand, finance originated from economics, but now it has been relatively independent from economics and has a relatively systematic research method. At the same time, modern finance still stays in the framework of neoclassical analysis of modern economics. Its characteristic is to start with the rational behavior of micro-subjects (behavioral finance also considers irrational behavior, such as anchoring effect) and build a market equilibrium system considering time and uncertain factors. Explore the mechanism and function of financial system in intertemporal resource allocation. Finance has created a unique research method in economics, such as arbitrage-free analysis, which is commonly used in the pricing of financial assets. This method is actually more specific than the analysis of supply and demand in economics and easier to realize in the market. In addition, it is very important that the concept of expectation of neoclassical economics development has been well applied in finance. Finance considers the random factors in the market, so the expectations of market participants play an important role in it and depend on numbers.