International Journal of Accounting Research

Influence of Digital Finance and Economic Analysis

Sun Huaping^* Department of Finance and Economics, Jiangsu University, Jiangsu, China
^*Correspondence: Sun Huaping, Department of Finance and Economics, Jiangsu University, Jiangsu, China, Email:

Received: 01-Apr-2022, Manuscript No. IJAR-22-16688; Editor assigned: 05-Apr-2022, Pre QC No. IJAR-22-16688(PQ); Reviewed: 20-Apr-2022, QC No. IJAR-22-16688; Revised: 28-Apr-2022, Manuscript No. IJAR-22-16688(R); Published: 06-May-2022, DOI: 10.35248/2472-114X.22.10.267

Description

The process of raising funds or capital for any type of spending is known as finance. It is the act of diverting various monies in the form of credit, loans, or invested capital to those economic organizations. Can use mostly in productively business finance, personal finance, and public finance are three main categories in finance that have established specialized organizations, methods, standards, and aims. In industrialized countries, a complex system of financial markets and institutions exists to meet the demands of these areas both together and independently.

Consumers, businesses, and governments frequently lack the finances necessary to make purchases, pay bills, or complete other transactions, and must borrow or sell equity to get the capital they require to operate. Savers and investors, on the other hand, amass cash that, if put to productive use, could yield interest or dividends. These savings can take the form of savings deposits, savings and loan shares, or pension and insurance claims, and they can be leased out at interest or invested in equity shares to create investment capital. The process of channeling these monies in the form of credit, loans, or invested capital to those economic organizations that most need or can put them to use is known as finance.

Personal finance is primarily concerned with family budgets, personal savings investments, and the usage of consumer credit. People often receive mortgages from commercial banks and savings and loan organizations to purchase their homes, while banks and finance businesses can provide financing for the purchase of consumer durable items (automobiles and appliances). Charge accounts and credit cards are two more common ways for banks and businesses to provide consumers with short-term credit. Small cash loans can be obtained from banks, credit unions, or finance organizations if people need to consolidate their debts or borrow money in an emergency.

Finance is a branch of economics in many ways. The management, formation, and research of money, banking, credit, investments, assets, and liabilities that make up financial systems, as well as the study of those financial instruments, are referred to as finance. Public finance, corporate finance, and personal finance are the three types of finance. Finance, like corporate finance, entails managing a company's assets, liabilities, revenues, and debt. Businesses can get money in a variety of ways, including equity investments and credit agreements. A corporation might take out a bank loan or set up a line of credit acquiring and managing debt effectively can help a company grow and become more profitable.

Personal finance refers to all of an individual's or household's financial decisions and actions, such as budgeting, insurance, mortgage planning, savings, and retirement planning. Public, or government, financing has risen dramatically in Western countries. As a result, taxation, government spending, and the form of the public debt now have a significantly greater impact on a country's economy than they did previously. Governments fund their expenditures through a variety of mechanisms, the most important of which being taxes. Government budgets, on the other hand, rarely balance, and in order to cover their deficits, governments must borrow, resulting in public debt. The majority of public debt is made up of marketable securities issued by governments, which are obligated to make certain payments to their holders at specific times. Economics is a social science that analyses the production, consumption, and distribution of goods and services in order to better understand how economies work and how people interact. Modern economics is frequently quite quantitative and heavily mathoriented in practice, while being dubbed a "social science" and often viewed as one of the liberal arts. Macroeconomics and microeconomics are the two primary areas of economics.