Financial System

A financial system is the network of institutions, markets, and processes that facilitate the flow of money and securities in an economy. It includes banks, stock exchanges, insurance companies, and payment systems, all working together to enable individuals and businesses to save, invest, borrow, and manage risks. This system helps allocate resources efficiently, supports economic growth, and ensures stability by providing access to capital, overseeing transactions, and managing financial risks. Essentially, it’s the infrastructure that keeps the economy functioning smoothly by connecting those who need funds with those who have them.