Interest rate: is defined as the price paid for borrowed funds over a period of time. Usually it is expressed as a percentage and represents a rate of exchange between the price of money today in terms of future money.
It is understood by finance all activities related to trade and capital management. Finances are a part of the economy and that have to do with the different ways of managing money in particular and specific situations. Finances can be divided into public and private finance depending on who is administering the subject capital: if a particular individual or the State or other public institutions.
While the forex trader and exchange of capital activity has always existed in human societies, we can say that the fifteenth century, with the rise of capitalism is the central moment to talk about finances as we know them today. Now is where banks, money changers, brokers and other characters and social actors responsible for such activities appear. At the same time, the twentieth century is the century in which capitalism going to focus almost exclusively on financial activities, turning these more important than industrial or commercial in the past.
Finances are nothing more than the administration and management of capital. In this sense, to carry out the finances of a company, a public institution or even personal finances, it is necessary to have specific training for the area and that often requires knowledge of concepts, operations and procedures of the economic area. The main purpose of finance is to allow orderly keep the balance between incoming capital (investments or returns) and projections (deposits or expenses). While most of the institutions, enterprises and companies have an area of finance professionals in charge of such activity, often personal finances are assigned by individuals to individuals trained to carry them out.
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