The financial system The financial system is a network of financial organizations, which carry out and regulate financial activities, the ministry of finance, the treasury, the central bank, the tax service, stock and currency exchanges. There are budgeting, financing, investment, banking, taxation and insurance are the primary forms of financial activities. Financial assets flow within the system from savers to borrowers, who use them. Savers and borrowers are linked by financial intermediaries. They can be banks, finance, investment and insurance companies.
The heart of Britain financial services business locates within the well-known Square Mile within the City of London. It is one regarding the largest financial centers within the world. The world's largest banks and financial markets located there. For example, London Stock Exchange, the Foreign Exchange Market, the Financial Futures and Choices Market, Eurobond and Eurocurrency markets. The financial things The technological market economy is populated by 3 categories of economic agents, whose interaction constitutes economic activity.
There exists budgeting, financing, investment, banking, taxation and insurance are the primary forms of financial activity. Financial assets flow within the system from savers, which act as sources of funds, to borrowers, who use them. Savers and borrowers are linked by financial intermediaries. They can be banks, finance, investment and insurance companies. And the ministry of finance, the treasury, the central bank, the tax service and other governmental organizations also carry out and regulate financial activities.
There are stock and currency exchanges, commercial banks, producers, finance, investment, insurance companies, and special financial-credit institutions for example investment founds, pawnshops, trust businesses - all of these categories of economic agencies carry out the financial activity, that is a backbone of any financial system. Banking Banks play very important role in any financial system. Banks are classified as commercial banks and central banks. Commercial banks reveal accounts for their clients and receive cash on current and deposit accounts. These funds they use to give loans and for investment.
They also collect cheques, discount bills, transfer money, buy and sell securities and do other commercial operations. The primary purpose of commercial banks is to make profit. The primary purpose of central bank is to manage monetary system. It helps government give monetary policy by regulating supply, cost and availability of cash and credit. It is the county's leading bank, which act as banker to government.
It issue banknotes, regulate activity of retail banks and give services related to the public debt. More articles on this topic SEE HERE.
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