Question

what is financial system? Illustrate with help of an example.

Answer 1

Answer:

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Financial system helps price discovery of financial assets resulting from the interaction of buyers and sellers.

For example, the prices of securities are determined by demand and supply forces in the capital market.

Hope it will be helpful :)

Answer 2

Answer:

A financial system is a set of institutions, such as banks, insurance companies, and stock exchanges, that permit the exchange of funds. ... 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.