What is term Equity used for?

No it doesn't have anything to do with funds it is the amount off assets minus liabilities it serves no purpose.
Say you have a home worth 400k and owe 300K you have 100K equity.
If you have a list of assets and liabilities the difference is net worth so if you have say brokerage accounts, home equity and cars, boats etc then you owe less than you own you have a net worth if your mortgages and student loans and other loans are more than assets you have a negative net worth.
A business calls it owners equity and it is what the owner put in plus any profits minus any losses and also matches the assets minus liabilities. A net worth or equity is good but doesn't do anything and isn't cash.

Equity is the funds on an account at the present moment. Equity includes both profits and losses on positions which are open at the time of its calculation. To calculate equity, use the formula: Equity = Balance + Credit + (Floating Profit – Floating Losses).

Equity is a concept, representing your interest in assets, or the amount of ownership in your assets. Shiwreck's description of your house less mortgage is a good example. In accounting, equity is the interest creditors and owners have in the assets of a business. Creditor's equity is known as liabilities, and owners' equity is called capital or net worth. Owners' Equity is an important number used to evaluate the return you are getting from the assets the business owns. Return on Equity (ROE) is calculated as net income over total capital. Equity also helps in measuring the amount of risk a business is assuming, such as evaluating the debt/equity ratio, or the amount of financial leverage the business has. To say that equity serves no purpose is nonsense. Your equity is a measure of your economic well-being. but individuals typically do not calculate their equity, although the concept is very important in accounting for business operations. It is important to understand that equity is not something you can touch or see. It is a concept, an idea, but one that prov=ides an insight into how well off you are economically.

it is used for the items that equal EQUITY

Your question makes no sense.

What is it information is usually used for? Huh????