Economics VS Finance: Which Study Is Better for UK Students?
So, you want to learn more about money, transactions, and markets but aren’t sure whether to pursue a degree in Finance or Economics?
We’ve got you covered, don’t worry! In this post, we’ll go over the fundamental differences between these fields, the kind of employment you can earn, and the topics you’ll study.
By the conclusion, you’ll know whether you should pursue a Master’s degree in Finance or Economics, and you’ll have a better understanding of your academic and professional prospects.
Finance examines money spent, asking how, what, when, and why it will be spent. Finance is in charge of the company’s assets and the distribution of these assets.
So, how about the economy? It integrates characteristics of both accounting and finance and applies them to a broader community in various respects.
FINANCE
In many ways, finance is a subset of economics. Finance refers to the management, creation, and study of money, banking, credit, investments, assets, and liabilities and the study of financial instruments that make up financial systems. However, students will be able to learn a lot through finance dissertation writing services in the UK. Corporate finance, public finance, and personal finance are the three main types of finance.
The study of prices, interest rates, money flows, and financial markets are traditionally the emphasis of finance. In a broader sense, finance is concerned with issues such as the time value of money, rates of return, cost of capital, efficient financial structures, and risk quantification.
Particular Points To Consider
Many people who work as analysts, bankers, or fund managers have a finance degree as a common denominator. Similarly, many people who work for commercial banks, insurance companies, and other financial service providers have finance degrees. A finance degree can lead to top management positions in firms and corporations outside the banking industry.
Finance entails determining the fair value of various financial instruments, such as determining the fair value of a variety of investment products. Stock-price models like the capital asset pricing model (CAPM) and option models like Black-Scholes are used in finance. Finance also entails selecting a corporation’s best dividend or debt policy and an investor’s best asset allocation plan.
ECONOMICS
Economics is a social science that examines the production, consumption, and allocation of goods and services to understand better how economies work and how people interact. Economics studies topics were relevant to understanding the many of the most pressing issues that today’s world is facing, such as resource exhaustion, pollution, and environmental degradation (Lipsey, Chrystal, 2011).
Modern economics is frequently quantitative and heavily math-oriented in practice while being dubbed a “social science” and often viewed as one of the liberal arts with the most accessible access to economics dissertation help. Microeconomics and Macroeconomics are the two primary areas of economics.
Particular Points To Consider
When economists are successful in understanding how consumers and producers respond to changing situations, economics can provide tremendous guidance and influence to national policy-making. In other words, how governments approach taxation, regulation, and government expenditure have real repercussions; economics may provide insight and analysis into these decisions.
Economic analysis can also assist investors in determining the impact of national policies and events on company circumstances. Understanding economics may provide investors with the knowledge to forecast macroeconomic conditions and assess the effects of those forecasts on businesses, equities, and financial markets.
WHAT IS THE DIFFERENCE BETWEEN FINANCE AND ECONOMICS?
Finance and Economics are closely interconnected sciences that oftentimes overlap; however, there are substantial contrasts between them. They should not, however, be thought separate. Both collaborate and complement one another.
The broader field of economics is concerned with how products and services are created, distributed, and sold. Economics also examines regional and worldwide economies and markets, and human behavior.
Finance is a more detailed field that concentrates on financial systems. Finance examines banking institutions and policies and credits, investments, and savings. It also examines how money is made and executed.
WHY SHOULD I PURSUE A CAREER IN FINANCE?
Studying finance will broaden your horizons, allowing you to examine global financial markets, corporate strategy, and how to anticipate a company’s future success. You’ll learn about investments, stock markets, and financial analytics, which a solid understanding of financial theory will underpin.
The following are some of the topics you might be studying:
- Ethics, Corporate Government, and Law
- Banking and Financial Institutions
- Financial Analytics
- Private Equity
- Venture Capital
- Investment and Portfolio Management
- Principles of Economics
- Corporate Finance
Students studying finance can pursue a variety of careers, including Taxation Consultant, Investment Analyst, or Finance Technician, as well as Commercial Banker, Hedge Fund Manager, or even Entrepreneur.
WHY SHOULD I PURSUE A DEGREE IN ECONOMICS?
The distinctions between economics and the other two courses, as previously said, are slightly easier to define. To begin with, economics includes more than simply money; it also involves labor, goods, and services. It’s also about society, whether local, national, or worldwide, rather than corporations. It is the theoretical study of making the most of the available resources.
The following are some of the topics you might be studying:
- Business Foundations
- Principles of Economics
- Business Analysis, Methods, and Techniques
- Microeconomics and Macroeconomics
- Political Economy
- Forecasting
Economists, Investment Analysts, Risk Analysts, and Statisticians are some of the career options available to Economics majors.
FINANCE AND ECONOMICS UNIVERSITIES IN THE UK
- University of Strathclyde
- London School of Economics and Political sciences
- University of Warwick
- University of Glasgow
- University of Leeds
- University of Manchester
- University of Dundee
- University of Bath
- King’s College London
- Durham University
- University of Cambridge
- University of Oxford
- UCL (University College London)
- University of St Andrews
CONCLUSIONS
Finance and Economics are two subjects that are not identical but however, related to each other. human behavior, products and services, Marketplaces, and other topics are studied in economics. Finance focuses on financial systems and everything associated with them, such as banks, loans, investments, and savings. Both fields prime to well-paying and in-demand positions. To succeed as an economist or financial expert, you must have an analytical mindset and the ability to deal with trends and figures.
