What are the four main areas of finance? Give a brief definition ...

[lidoalex]

What are the four main areas of finance? Give a brief definition of each.
 
  What will be an ideal response?

Question 2

Financial institutions and markets are the organized financial intermediaries and the forums that promote the cycle of money.
 
  Indicate whether the statement is true or false.

[ynlevi]

Answer to Question 1

Answer: The four main areas of finance are corporate finance, investments, financial institutions and markets, and international finance. Corporate finance deals with the financial operations of the firm and focuses on capital budgeting, capital structure, and working capital management. It is the primary focus of this text. Investments focuses on the activities associated with the buying, selling, pricing, and risk evaluation of financial assets. It is commonly the part of finance most interesting to students. Financial institutions and markets is the study of the firms and organizations that facilitate and regulate the trading of financial assets as well as the markets that make the trading possible. International finance deals with the multinational aspects of the other three areas of finance. Decision-making in the international arena is complicated by language differences, currency differences, taxation issues and differences in local and national laws. An expertise in international finance is a valuable asset to firms that have business dealings that span more than one country.

Answer to Question 2

Answer: TRUE

[lidoalex]

Thank you

[ynlevi]

Happy to help you