Financial economics is a branch of economics that studies how individuals, businesses, and institutions make decisions about how to allocate their resources in the financial market. It explores topics such as financial markets, investment decisions, risk management, and the pricing of financial assets. Financial economics also examines the relationship between economic factors and financial markets, and how these factors impact various aspects of the economy. This field of study is essential for understanding how financial decisions affect the overall economy and can help to inform policy decisions and investment strategies.