There are three parts that included in the discipline of finance and its practices. The personal finance is the small scope from the study of finance. It is basically about the individual finance management that include managing income and expenses, credit and debt, saving and investment and financial security. The personal finance is practically concerned about and individual or a family’s financial management. The corporate finance is having larger scope that concerning about profit or business organization. The study of finance in this area is focusing on corporation, trusts, business partnership and other financial entities that related to profit oriented business activities.
The public finance is the relationship and financial affairs of domestic and international government and other public entities. The whole schemes are related and create the chain reaction that affect the world’s politics, social life, consumption, production, distribution, tax, labor, health, education, poverty and other global issues.
The macro and micro level of finance can deliver the effect on the society through a group of personal finances. The issues become the study of policy and welfare in the government level, become the study of production and distribution in the corporate and business level, and become the study of consumption and management in the personal level.
The expert on economic science can create abstract hypothesis for analyzing and predicting the production, distribution and consumption processes. The financial market that becomes the financial system’s practical area is considered as the fair mechanism for the process of financing production, distribution and consumption of products that consist of goods and services. Some theoretical hypothesis and assumption made by economic experts might be useless and unreliable when applied the real financial system.