Asked by Emanuela Tigistu on Jul 30, 2024
Verified
Financial theory stems primarily from:
A) mathematics.
B) finance.
C) economics.
D) accounting.
Financial Theory
A branch of economics that aims to understand and explain how financial markets operate, the structure of capital markets, and the pricing of financial instruments.
Economics
The social science that studies how people use scarce resources to produce valuable commodities and distribute them among different people.
Mathematics
Mathematics is the abstract study of numbers, quantity, structure, space, and change, used as a tool in a wide range of disciplines.
- Identify the role and significance of financial markets.
Verified Answer
UR
ugyen rangdrolAug 01, 2024
Final Answer :
C
Explanation :
Financial theory stems primarily from the field of economics, as it is concerned with the behavior of economic agents such as individuals, companies, and governments, and how they interact in markets to make financial decisions. While mathematics, finance, and accounting are important components of financial theory, they are all ultimately rooted in economic principles and models.
Learning Objectives
- Identify the role and significance of financial markets.