The word finance has the sane connotations wherever it is used. It means liquid funds or cash reserves to be utilized for various purposes. For a very poor man, finance has only one meaning and that is to be able to generate enough to get him two meals a day. For a common man, it means to be able to pay off all his loan installments, his kids school fees, and his and his wife’s requirements depending upon their social circle.
For a small shop owner, the word finance means the funds he needs for his next purchase for the big occasions like Christmas and New Year. To an industrialist, the same word means his ability to complete the ongoing projects and to sign off new contracts with other companies. For a country, finance means reserves to be spent on the development of infrastructure, imports, healthcare, research and development agriculture and all other essential sectors. But in all situations, the essence of the word remains the same. It’s only the degree and magnitude that change.
Finance in itself is a big subject that is taught in business schools according to scientific rules. These finance schools produce youngsters trained in the principles of finance that go on to hold the reigns in big multinational companies. People having knowledge of sound principles of finance make the financial policies of the companies and they are accountable if any financial irregularities are found in the balance sheets or the accounts of any company.
Banks and other financial institutions are the backbone of any economy and they serve the financial needs of the people by making available loans and other mortgages to let them carry on with their projects like buying a car, electronics, home or any other thing. Banks even provide finances to let a person complete his higher education.