InvestorQ : What is the difference between money, finance, and funds?
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What is the difference between money, finance, and funds?

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3 months ago
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Let’s understand each term first:

Money: These are physical coins and bills that one can trade for the services and goods they receive. It is validly held paper notes. Money is a part of finance, but finance includes several other things as well. Money acts as a medium of exchange, store of value, a unit of account, and sometimes it can also act as a standard for deferred payments.

Finance: This is the study of money and involves planning to use it. It involves the acquisition of money from different sources and then finding out the best way to invest or use that money. Finance is divided into three areas namely, personal finance, public finance, and corporate finance.

The main focus of finance involves money management, i.e., to manage the money/assets that an organization has in the best possible manner. 

Funds: This means the money we keep aside for a particular goal. It involves financial planning as well as real money. There are several funds such as retirement funds, pension funds, education funds, emergency funds, etc. As far as finance and finances are considered, there is no specific difference between the two. They only differ in terms of a noun.
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