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Writer's pictureImran Ghani

Major in Finance Vs Major in Economics

Updated: Oct 27, 2021



In almost all of the educational institutes, both finance and economics are taught as different disciplines. But one thing that the majority of the learners don’t know is that both the disciplines are interrelated to each other and have a great influence on one another as well. So who cares about both these disciplines the most? Investors…


The investors care a lot about both these studies because they also influence the market to a great extent. So what does both the discipline tell us or focus on?


Well, if we talk about economics, then we can say that the focus on economics is more on the big picture. By that, we mean giving us an idea about how a country or a region and market is performing. With that, it also focuses on public policy. On the contrary, if we talk about finance then everyone should know that its focus is more company or industry-specific. Finance also focuses on how companies and investors can evaluate risk and return.


All these LSE online courses contains the best learning material related to Economics and Finance. These LSE Online Course combines both the theory and practice that will help a learner to make informed decisions that are based on economic and financial theories and research.


Historically, it was always clear as a crystal that economics is more theoretical whereas finance is practical. But we can’t say this statement by looking at the situation of the last 20 years. In short, the distinction has become much less pronounced. And that is why we can say that the two disciplines have converged in some respects. Nowadays, both economists and finance professionals can get a job in government, corporations, and financial markets easily. Thus both these disciplines are likely to remain very important to the economy, investors, and markets. But still, you should know that at some fundamental level, there will always be a separation between them.


Some key facts about Finance and Economics:


The following are some key facts about both the disciplines that can make you understand how important they are to the investors, markets, government, and each other and still they are different to a fundamental level.

  • Finance as a discipline has been derived from economics. It is because finance involves assessing money, banking, investments, credit, and other financial systems which are also studied in economics.

  • Finance is further broken down into three highly related but separate categories. This includes public finance, personal finance, and corporate finance.

  • The focus of economics is to look at how goods and services are made, distributed, and then used. With that, it also focuses on how the economy overall functions along with all such people who play part in driving economic activity.

  • Economics has two main branches. One is macroeconomic which looks over the whole economy. The other one is microeconomics which focuses on specific factors within the economy.

Which one is a better option to do majors in?


Like we have mentioned earlier that both are interrelated to one another and puts great influence on one another as well. So, it’s very hard to find out which option is better. And therefore we would say that it depends on you. While it is true that no field is better for everyone, it is also true that it depends on your aptitude and how well you are able to perform well in a specific field.


Economics is theoretical whereas finance is practical and is a little difficult. But if you are exceptionally good at understanding things then it won’t bother you to go for any of both fields right? But do keep one thing in mind that finance is a professional degree and is one of the topmost valuable college degrees with high entry-level wages outside the tech world. Contrary, economics is more of an academic degree and even if you wish to develop a career in finance, a degree in economics can be a good foundation to build on.


Conclusion:


Thus we can say that both the degrees are exceptionally good and of great value. The only thing that matters here is what you want and are comfortable with. If you have an interest in finance then it is best to choose this field as majors and if the situation is otherwise then economics is your answer. There are many more benefits can be gained while studying through online LSE and trust us once you’re able to complete a course and get a certificate, you would want to enroll in another one and start learning from it. So visit the official website of the London School of Economics today and look for their online courses and certificates. Find yourself the one that is according to your interest in the area, enroll in it, and start learning today.  . Now, it is up to you to take all the time you need and then decide what you want.

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