Economics Vs. Finance – Which Course is Better for the Future?
Students often struggle to differentiate between Economics and Finance courses and therefore are not able to decide which of the two they should opt to study in a college or university. Though there surely are some similarities between these two streams, each of them have its characteristics and features. If you need help in deciding which subject or course is suited better for you in your specialization or BBA course duration, then read ahead.
In simple words, Economics is typically a social science that dives deep into the broader management of goods and services, which include their production and consumption, and the factors that affect them. In contrast, Finance is the science of handling and managing available funds.
Differences Between Finance and Economics
Economics explains the various factors involved in scarcity or surplus of goods and services that influence and can be applied to almost all spheres in the society, business in general, and to governments too. Whereas, Finance mainly deals with saving and lending money while keeping in mind the available time, cash at hand, and all the risks involved. Finance can, therefore, be considered a small subset of Economics.
Differences in Roles
Professional economists are hired to work as consultants in the private sector institutions like banking and Finance and also employed by various government departments like the Treasury or Central Bank.
Personal Finance is usually managed by individuals, whereas banks and other institutions manage the business and public finance areas.
Professional Qualifications in Economics and Finance
Academic institutions offer several courses in Economics and associated subjects such as Philosophy of Economics, Political Economy, Laws and Economics, and others. Related courses in the finance stream include Chartered Financial Analysts, Accountancy, Business qualifications, and more.
Finance Vs. Economics – Conclusion
Though Finance and Economics walk side by side in defining any company’s or country’s economic growth, Economics provides a very macro view with the assistance of strategies and policies, Finance deals with the nitty-gritty of how money grows in the market. Any financial analyst would surely depend on the primary economics of the country or state and then make decisions involving its growth. Therefore, we can say that although there are differences, both Finance and Economics are essential parts of any commercial studies. Thus, both these subjects are a part of the BBA syllabus.
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