Financial System

A financial system describes a country's financial institutions including commercial banks, insurance companies, and other nonbank financial institutions) and also financial markets (such as those in stocks, bonds and currencies). Also includes the financial infrastructure (for example, payments and settlement systems which can change as a result of new financial technologies.Key roles of financial marketsA financial market is any exchange that facilitates trading of instruments, such as stocks, bonds, foreign exchange, or primary commodities such as oil and gasTo facilitate saving by businesses and householdsTo lend to businesses and individualsTo allocate funds to productive usesTo facilitate the final exchange of goods and servicesTo provide forward markets in currencies and commoditiesTo provide a market for equities and bonds

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