ABSTRACT
Finance is the management of money through banking, asset management (investments), ministries of finance, central banks, and other financial instruments and institutions. Finance thus links people with a surplus of money with those who are in need of money on terms agreeable to both, like the interest paid on a loan or the share of the profit and loss for a more risky equity investment. Central and commercial banks have the ability to create money. Money is often defined by its three key functions: “Medium of Exchange”, “Unit of Account”, and “Store of Value” (see Money).
