Role of Finance in Economic Development
Finance plays a vital role in Economic Development. It is a broad subject and has many aspects attached to it. Financial topics include managerial finance, balance sheet analysis, capital budgeting, etc. Finance Assignment Help Online explains the various role of finance in economic development. Some of the rules of finance in economic development are discussed below: - · Growth of Capital Market- Two types of capital is required for any business- fixed capital and working capital. As the name suggests, fixed capital is used to invest in fixed assets (plant, infrastructure, and machinery). While the working capital is used to run the day-to-day activities of the business. The main use of working capital is to purchase raw materials and convert them into finished products. · Development of Trade- Finance or the financial system is the basis of promotion of both domestic and fo...