<p>i was doing research about undergrad B school online. i checked the ranking of finance but there arent that many top schools on it. and theres a note saying that good education can be found in good econ majors in schools like UChicago. so i just wanna know what is exactly the difference between the two majors?</p>
<p>Finance is more practical versus Economics is more theory... Finance is like applied mathematical version of Economics... the true difference is vast and I'm incapable to explain it...</p>
<p>^is generally correct. The "true difference" is that they're actually completely different fields of study altogether. You use some economics in finance and some finance in economics, but you're emphasizing different aspects.</p>
<p>Think about it like this (2-word [over]simplifications):</p>
<p>Accounting: debits and credits
Economics: supply and demand
Finance: risk and return</p>
<p>good post redhare.... That is a great way to sum up what each field is all about.</p>
<p>Yep, good short description.</p>
<p>I'd like to also add, within finance there are very different areas. </p>
<p>Corporate finance: **closely related to accounting.
**Financial markets: closely related to economics.
Theoretical finance: closely related to math and mathematical economics.</p>
<p>It is common for finance students to find one area very interesting and another horribly boring. Which is which depends on the person.</p>
<p>Within economics there are different areas too.</p>
<p>Microeconomics: supply and demand, with reference to individuals, households, firms and industries.
Macroeconomics: supply and demand, with reference to countries, monetary systems, international trade and international organizations.
Econometrics: closely related to statistics and math.</p>
<p>Again, it is common for economics students to love one area while disliking one or more of the others.</p>
<p>redhare and nauru, great posts, thanks!</p>