What is the relationship between financial management and macroeconomics?
Explain the relationship between financial management and (a) microeconomics and (b) macroeconomics. Financial management and economics are closely related. Financial management focuses on the management of funds in order to achieve a company’s objectives. Economics focuses on the creation, use, and transfer of commodities.
What is the relationship between economics and finance?
Relationships to Economics: There are two important linkages between economics and finance. The macroeconomic environment defines the setting within which a firm operates and the micro-economic theory provides the conceptual under pinning for the tools of financial decision making.
What are the functions of financial managers?
Investment decisions, micro and macro environmental factors are closely associated with the functions of financial manager. FM also uses the economic equations like money value discount factor, economic order quantity etc. financial economics is one of the emerging area, which provides immense opportunities to finance and economical areas.