how would you like to explain the role of financial institutions for the development of different sectors of Indian economy
Answers
Answer:
The primary role of financial institutions is to provide liquidity to the economy and permit a higher level of economic activity than would otherwise be possible. According to the Brookings Institute, banks accomplish this in three main ways: offering credit, managing markets and pooling risk among consumers.
Here financial institutions like banks play a major role. They allow depositors invest money in various deposits like FDs and RDs by offering attractive rates of interest. ... Banks help in the allocation of resources across different sectors of the economy.
Answer:
The financial system plays a crucial role in the economic development of a country. Businesses and industries are financed by the financial systems which lead to growth in employment and in turn increase economic activity and domestic trade. Financial intermediaries help improve investment efficiency, leading to higher economic growth