Individuals who are intrigued by money and have a keen interest in buying and selling often wonder whether finance and economics are related and, if so, how so. Economics deals with how goods and services are produced, distributed and consumed by the public . And Finance is concerned with money more appropriately Cash flow.

Economics is a “study.” It involves research into the financial “pulse” of an industry or even a country. Just as the human pulse is affected by stress or increased activity, the economic pulse , measured in part by the gross domestic production figure, is affected by government policies and regulations, trends in domestic and international financial markets, predictions of social unrest, taxes and other issues. Economists study and analyze these things to provide a structural base for sound financial decisions.

When we hear the word economics, we generally think of money. Yet, when we hear the word finance, we also think of money. Does this mean economics and finance are the same things? They may not be the same, but they are very similar because they both deal with the same thing: goods and services. Finance is actually a specific branch of economics.

Many sources see economics and finance as “ two sides of a coin.” While economists are striving to understand macroeconomics by studying the smaller aspects of microeconomics, finance professionals will not succeed without a grasp of economics. Economics analyzes supply and demand equilibrium, data such as average cost and marginal cost and other concepts. Finance applies these analyses to real-world industries.