Monetary systems have reached their primes through many centuries over the world; they have now attained a position in many dominating countries with their vast investment opportunities and the correlation with Finance. The prime reason why many economist have struggled over the years to solve years is the reason behind the entity known as finance and it’s over exaggerated influence on the market or rather how has finance initially reached to a state that it has become much fluid and transparent, that the very factor of profit from large scale industries which regulated finance by keeping it in strict checking have now fallen back in Australia as the finance charts keeps on rising and at a stable position.
Many economists have performed research upon the great evolution of Finance in Australia. Studies show that the average percentage on annual charts of profits were only 5% of finances controlling the market, today they have reached to a staggering percentage of 35% in the market thus making it evident that the profit of any company does not entirely mean the companies earning big bucks, it only means in simpler words that the finances of the company are heavily invested in the market in forms of stocks, liabilities and products to keep it situated.
The Australian banks on the sole purpose and reason of Interests and in order to regulate more profit in form of Finance which are in obvious saturation there are two key factors to how this entity has grown above the market. That first and the most important reason is the amount of car, house and bank loans Australian people are acquiring every year, the real estate business is booming each day with more houses in the scenes and this is what’s driving these loans, more loans mean more interest to the banks thus boosting the charts of these banks.
The second reason for these Finance charts to rise up can be described in economic terminology which is described as asset management procedure, it requires a middle man or a broker in stock terms which regulate assets of investors and clients across in different means by charging a small percentage, the reason why many people have yet ignored this fees is because the minimal percentage sounds much less in words but if properly calculated on a large scale, it shows how this percentage by introducing a third party to control money has had an influence in the evolution of finance not just in Australia but the entire world where these markets operate.