Document Summary
Financial system allow the transfer of money between savers and investors. Financial system can operate on a global, regional or firm. Financial system is a set of institutions such as bank, insurance companies and stock exchange. In this individual saves their money and invest them whenever they want. Investors put their money in these institutions which offer them a reward for savings. There are different types of financial institutions: Non-banking institutions i. ii: mutual funds iv. v. vi. Banking institutions: banking institutions such as commercial banks collect money from depositors directly and lend to investor and borrowers. Non-banking institutions: non-banking institutions such as uti, lic are engaged in obtaining funds from depositors investors: financial markets: A financial market can be defined as the market where financial assets are sold and purchased such as equities, bonds, currencies etc. Financial services are various functions and services that are provided by financial institutions in a financial system.
