Lec 1 introduction to finance

Download Lec 1  introduction to finance

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<ul><li> 1. Introduction to Finance</li></ul> <p> 2. What is Finance? Broad term Finance Money resources, income etc Science of managing money 3. Financial system (economy) Composed of ? Finance is getting money to purchase goods andservices HHs -excess money Corporations- need money 4. Purpose of the financial system is to make sure thatthe money flows to those who value it the highestexample- corporations and HHs example-Lend money People will not lend and if1. They do they will require a larger repayment2. There are many things to do with their money3. The borrower is going to do something risky with money4. The borrower has an unsavory reputation</p>