Recognition of finance

Finance is the currency circulation and credit activities and the economic activities associated with the general term, the broader sense of finance refers to all the issuance of credit money, custody, exchange, settlement, the economic activities related to the financing, and even includes the sale of gold and silver.

Specialized finance in the narrow sense refers to the credit currency financing. The content of finance can be summarized as the issuance of money and back, deposit absorption and payment, loan issuance and recovery, gold and silver, foreign exchange trading, securities issuance and transfer, insurance, trust, domestic and international monetary settlement. Institutions engaged in financial activities are mainly banks, trust and investment companies, insurance companies, securities companies, investment funds, credit unions, finance companies, financial asset management companies, postal savings institutions, financial leasing companies, and securities, gold and silver, foreign exchange exchanges and so on. Finance is an economic category formed after the emergence of credit money, it and credit are two different concepts: (1) finance does not include physical lending and exclusively refers to the financing of monetary funds (in the narrow sense of the financial), in addition to lending money through the financing of funds, but also the issuance of shares in order to finance the funds

2) credit refers to the borrowing and lending of all currencies, finance (in the narrow sense) refers to the financing of credit money. The reason why people want to create a new concept in addition to "credit" to exclusively refer to the credit money financing, in order to summarize a new economic phenomenon; credit and money circulation, the two economic processes have been closely integrated. Finance is best characterized by banking credit, which creates and destroys money, and which is considered to be at the heart of finance.