Overview

F n n is a t rm for m tt r r g rd ng th management, r t n, nd study f money nd nv tm nt . F n n n be br dl divided nt thr t g r - Publ f n n - Corporate f n n - P r n l f n n Th r r m n th r specific t g r , such as b h v r l f n n , which k to d nt f the cognitive ( .g., m t n l, l, nd h l g l) reasons behind financial d n . Understanding F n n Finance t ll broken d wn nt thr broad categories: Public finance includes tax systems, government x nd tur , budg t r dur , stabilization l nd instruments, debt u , nd th r g v rnm nt concerns. C r r t finance nv lv m n g ng t , liabilities, r v nu , nd debts for a bu n . P r n l f n n d f n ll financial decisions nd activities of an nd v du l r household, including budg t ng, n ur n , m rtg g planning, v ng , nd r t r m nt l nn ng. H t r of F n n F n n as a tud f theory and practice d t n t fr m th field f n m r n th 1940s nd 1950s w th the works of M rk w tz, Tobin, Sharpe, Tr n r, Black, nd S h l , to name ju t a few. But rt ul r realms of f n n - u h as b nk ng, lending, nd nv t ng, f ur , m n t lf-h v been r und n th dawn f v l z t n n m f rm r n th r. Ar und 3000 BC, banking m t h v r g n t d n th Babylonian/Sumerian m r , where temples nd l were u d as safe places f r the t r g f financial assets-grain, ttl , nd lv r r copper ng t . Gr n w th urr n of h in th untr , wh l lv r was r f rr d in th t . The f n n l transactions of the rl Sum r n w r f rm l z d in th B b l n n C d f Hammurabi ( r 1800 BC). This set f rul r gul t d wn r h or rental f l nd, m l m nt of gr ultur l labor, and r d t. Y , there w r l n b k th n, nd , nt r t was h rg d on them-rates varied d nd ng n whether u w r b rr w ng gr n or silver. By 1200 BC, cowrie h ll w r used as a form f money n China. C n d m n w ntr du d in th f r t millennium BC. K ng Croesus f L d (n w Turk ) w n f the first to strike nd r ul t g ld n around 564 BC-hence the expression, rich Croesus.

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