Financial Markets and Monetary Systems

Financial markets are platforms where people buy and sell assets like stocks, bonds, and currencies. They facilitate investment and savings, helping allocate resources efficiently. Monetary systems, on the other hand, involve the processes by which a country's central bank manages money supply and interest rates to promote economic stability. Together, they influence inflation, employment, and overall economic growth. By managing liquidity and setting policies, these systems aim to ensure that money retains its value and that the economy functions smoothly, enabling individuals and businesses to make informed financial decisions.