INTRODUCTION TO OVERVIEW OF FINANCIAL MARKETS

The financial system refers to the network of institutions, markets, and intermediaries that facilitate the flow of funds and financial resources within an economy. It plays a crucial role in allocating resources, enabling economic activities, and promoting growth.

Financial intermediaries are institutions or entities that act as middlemen or intermediaries in the financial system. They play a crucial role in facilitating the flow of funds between savers and borrowers. Essentially, they collect funds from savers and allocate them to borrowers, thereby providing a critical link in the process of financial intermediation

components of financial system

There are five Basic Components of Financial System;

1. Financial Institutions
2. Financial Markets
3. Financial Instruments (Assets or Securities)
4. Financial Services
5. Money