Is finance a general term? …………

The essence of finance is value circulation. There are many kinds of financial products, including banks, securities, funds, insurance, trusts and so on.

The concept of traditional finance is a subject that studies the circulation of money and funds. The essence of modern finance is the capitalization process of business activities. Therefore, finance is an economic activity.

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 function of intermediary structure.

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

4. Financial places: financial markets, including capital markets, money markets, foreign exchange markets, insurance markets, derivative financial instruments markets, etc.

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