graph indicates the distribution of outstanding securities by issuer (public and private sector) as of 2019 in USA. Considering this distribution,
a. Discuss to what extent financial system performs its essential function in American Explain your conclusion with related reasoning
b. Can this structure of the financial system create some problems in the economy? Why and how?
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A financial system is a set of institutions, such as banks, insurance companies, and stock exchanges, that permit the exchange of funds. Financial systems exist on firm, regional, and global levels. Borrowers, lenders, and investors exchange current funds to finance projects, either for consumption or productive investments, and to pursue a return on their financial assets. The financial system also includes sets of rules and practices that borrowers and lenders use to decide which projects get financed, who finances projects, and terms of financial deals.
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