Finance: meaning, definitions and examples

Finance refers to the management of large amounts of money, especially by governments or large companies. It encompasses activities, processes, and systems involved in managing finances.

• He works in the finance department
• The finance minister announced the new budget

Funding refers to money provided, especially by an organization or government, for a particular purpose like research, projects, or startups. It is often used when discussing sources of financial support.

• The project is seeking funding from investors
• They received funding for their new educational program

Capital refers to wealth in the form of money or assets owned by a person or organization, available for a purpose such as starting a company or investing. It is often used in business and economic contexts.

• We need to raise more capital to expand our operations
• She invested a lot of her capital in real estate

Monetary relates to money or currency, particularly in the context of policies or systems set by governments or financial institutions. It is often used in a formal or economic setting.

• The central bank's monetary policy affects interest rates
• There are strict monetary controls in place

This word is used in a formal context to describe the provision or management of large sums of money, typically for projects or businesses.

• They need to finance the new infrastructure project
• The company decided to finance the startup

This word is commonly used in both formal and informal contexts to describe providing money for a specific purpose, often for initiatives, projects, or organizations.

• They need to fund the research project
• We will fund the community program next year

This word is typically used when a person or organization provides financial support for an event, activity, or individual, often in exchange for advertising or association benefits.

• The company decided to sponsor the local football team
• Many businesses sponsor marathons and similar events

This word can be used informally to describe supporting someone or something, often with money. It can also mean supporting with other kinds of help, like approval or endorsement.

• She agreed to back the charity event
• The investors are backing the new app development