Financial Economics

Financial economics refers to the study of money or capital management, on the personal, business, and governmental levels. It seeks to document how a person or entity uses the resources available to them to make financial decisions under the uncertainty of financial markets. This can include investments, the manipulation of prices, and the shifting of interest rates. There are three kinds of finance: personal finance, corporate finance, and government finance, but financial economics often focuses on corporate and governmental finance.

Monetary System

A Monetary System is defined as a set of policies, frameworks, and institutions by which the government creates money in an economy. Such institutions include the mint, the central bank, treasury, and other financial institutions. There are three common types of monetary systems – commodity money, commodity-based money, and fiat money.

The Stock Market

A stock market (also known as an equity market or share market), is a collection of buyers and sellers of stocks. These stocks represent ownership interests in companies. These may include publicly or privately traded securities. The New York Stock Exchange (NYSE) is an example of a share market.