Finance is the science of funds management. The general areas of finance are business finance, personal finance, and public finance. Finance includes saving money and often includes lending money. The field of finance deals with the concepts of time, money and risk and how they are interrelated. It also deals with how money is spent and budgeted. Finance works most basically through individuals and business organizations depositing money in a bank. The bank then lends the money out to other individuals or corporations for consumption or investment, and charges interest on the loans. Loans have become increasingly packaged for resale, meaning that an investor buys the loan from a bank or directly from a corporation. Bonds are debt instruments sold to investors for organisations such as companies, governments or charities. The investor can then hold the debt and collect the interest or sell the debt on a secondary market.
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