Finance and Its Function

November 23, 2016Finance Standard

Our life has a close association with various forms finance. For the unfortunate people, finance is a mirage. They are living in high expectations to have rich finance and weed out their miseries. Australia is comparatively robust in finance, and their economy is much stronger when comparing to European countries.

Ever since human race deviated from barter system and the introduction of paper currencies, the finance transaction becomes very easy. The state issue currencies, and promise to pay the value printed on the money by keeping equivalent amount of gold in their Central Bank and thus control the monitory value of the currency. The currencies carry multiple forms security features making it impregnable to clone. The technology used to print currencies will always remain as security, and the Central Banks use special inks, and security papers to print their currencies.

Along with the convenience of carrying currencies and using them for finance transaction. Some unscrupulous people hoard currency notes and create pressure on the market. When a shortage of on appear on the market, sales will go down and as a result, to balance the daily expenditure of running cost, traders make a desperate deal. Only if the bonafide intent of the currency transaction on behalf of a finance deal is clean and free of tax liability, then only the economy can improve.

As far as daily expenditure and monthly income concerned, employees who manage their finance can have a trouble free life. They need to plan their finance and budget appropriately to meet both ends of their life. A better-planed employee or a person with average income and with good credit rating can avail various finance options to purchase their dream house, car and many things.

Vehicle finance and home finance is the widely discussed finance portfolio. There are many institutions including banks and private venture companies are aggressively marketing their products to seduce the public. Some countries, as statutory practice, the borrower need to offer co-guarantor to avail vehicle loan. Today, we are living in a different type of finance market, where finance companies are running after the clients with golden hooks. We can see that the vehicle manufacturers offering finance packages with zero percentage interest beat the market situation.

Overall, the economy is healthy; the world is gradually coming out from the recession. Finance projections of most of the companies are good. A lot of accusation and merger are happening. Government to government deals are a daily process. All such transactions are with a focus on finance, closely monitoring the balance sheet of trade and finance.