Financial
economics is a branch of economics which deals with the finance or money aspect
of economics. It helps businesses, individuals, and public sectors to
understand how various things affect the monetary aspect in the economy. For
the example, how income, cost of goods, time value for money and risks affect the
economy as a whole. With such a discipline, it is easy for a business to make
the right decision during production so that they can maintain their profit at
a certain level. Students need to understand the financial economics part of
the subject in order to be able to apply the economic theories in the subject
matter.
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