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	Finance Financial Economics Basics of Personal Finance Basics of Business Finance Basics of State Finance Experimental Finance Financial Economics Financial Planner Foreign Exchange Market Risk-free interest rate Yield Curve The branch of economics that is concerned with resource allocation over time is called financial economics. There are four basic factors addressed in financial economics. They are: 1. Time. The future money is dependent upon how the money is currently being traded. 2. Uncertainty. The amount of future money is uncertain. This factor also includes risk. 3. Options. Decisions made will affect the future money and the decisions that are made in the future. 4. Information. The knowledge of the future can reduce the uncertainty associated with the future monetary value. Financial economics is different from the other branches of economics. It concentrates on monetary activities where money is on both sides of the trade. For example, in lending, money is exchanged for money. Financial economics focuses on the workings of the various financial markets, including the stock market, corporate finance and investments. There are many subject areas in financial economics that apply to the individual consumer and the business owner, especially budgeting, saving, investing, borrowing, lending, insuring, hedging, diversifying and asset management. Due to the unpredictability of the future, much attention is given to uncertainty and its impact on resource allocation. The questions asked by financial economics include: " How are prices determined? This question looks at financial assets such as stocks, bonds and commodities. " What are the effects of different financial methods? For example, what effect does issuing shares have on a company in the financing of company operations? " How can an investor meet his goals? This looks at portfolios, investment allocations and techniques. Financial economics is based on assumptions. The main assumption is that decision makers are rational. This assumption has been challenged recently by the experimental economics and finance. Behavioral finance continues to challenge the assumptions of financial economics by looking at the lack of rationality of economic entities.