Financial Economics

Financial economics is a branch of economics that deals with various financial markets, taking into consideration how resources are being used. Its particular attention to monetary activities sets it apart from the other branches. In financial economics, important aspects that occur in Forex and stock markets are analyzed, as well as how inflation, depression, deflation, recession, prices, and other financial variables impact one another. Financial economics is important in making investment decisions, identifying risks, and valuing securities and assets. Financial economics also encompasses financial instruments such as bonds, stocks, and securities. It also looks at the various market regulations that govern the markets where these tools are traded. Of course, the markets and financial institutions are also within the purview of financial economics.