What are the common financial management phenomena in life?

There are four common financial phenomena in life:

1, the innovation of financial industry in ordinary people's daily life includes the increase of social wealth, the increase of jobs and the improvement of people's satisfaction;

2. The core position of finance in modern economy is determined by its special nature and function. Modern economy is a market economy. Market economy is essentially a developed monetary credit economy or financial economy. Its operation shows that value flow leads to material flow, and money flow leads to material resource flow;

3. Finance is an important lever to adjust macro-economy in modern economy. Modern economy is an economy that allocates resources through market mechanism. One of its remarkable features is indirect macro-control. Finance plays a very important role in the establishment and improvement of the national macro-control system;

4. In modern economic life, monetary fund, as an important economic resource and wealth, has become the lifeline and medium to communicate the whole social and economic life. Almost all modern economic activities are inseparable from the flow of money and capital.

: finance

The essence of finance is value circulation. There are many kinds of financial products, including banks, securities, insurance, trusts and so on. Finance involves a wide range of academic fields, including accounting, finance, investment, banking, securities, insurance, trust and so on.

Finance is a trading activity, and financial trading itself does not create value. Then why does it make money in financial transactions? Mr. Chen Zhiwu believes that financial transactions are a way to realize future income, that is, tomorrow's money will be spent today. If you spend a lot of money tomorrow, will it cause inflation?

Simply put, the frequency of financial transactions is an important indicator reflecting the economic prosperity of a region, a region and even a country.

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.

The western definition, the New palgrave Dictionary of Economics, refers to the operation of the capital market, the supply and pricing of assets. Its basic contents include efficient market, risk and return, substitution and arbitrage, option pricing and corporate finance.

Gold once became the only medium of international trade. In the era of barter economy, businessmen can only carry out counterpart transactions and barter. Therefore, human economic activities are greatly restricted. In the era of gold standard economy, value and wealth are based on physical assets-gold. This objective physical method is very beneficial to the stable development of the global economy.

However, as the carrier of value circulation, gold's disadvantages, such as inconvenient physical conditions such as handling, carrying and conversion, make it give way to more flexible paper money (currency).

Nowadays, the monetary economy not only replaces the original barter economy, but also covers the gold standard economy. Monetary economy brings unprecedented economic freedom to mankind, but also brings many troubles and problems to mankind, such as unbalanced world trade, inconsistent values, inflation, currency depreciation, ups and downs of economic development and so on.

One of the important macro factors that triggered the global financial crisis is the global trade imbalance.

The original intention of breaking away from the gold standard was to achieve economic freedom and stable development, but it backfired. In today's diversified currency, the "gold content" of modern finance is getting less and less, but its connotation, function and risk are getting wider and wider, which has penetrated into every corner of society and everyone's life.

Nowadays, although the "gold content" of finance is getting less and less, its liquidity as a value is getting stronger and stronger. Finance has become the "blood" of the whole economy and penetrated into all aspects of society.

Human activities will promote blood flow. Similarly, all economic activities will promote the flow of finance (capital and value). Without liquidity, finance will become a "pool of stagnant water" and its value cannot be converted; If the value can't be converted, the economy can't run; If the economy can't run, new value can't be generated; If it can't produce new value, human society can't develop.

On the contrary, when the financial crisis develops to a certain extent, it will turn into an economic crisis; When the economic crisis develops to a certain extent, it will turn into a social crisis. This is an objective financial law independent of human consciousness.