How the Financial System Works?

How the Financial System Works? 




Financial systems allow investors, lenders and borrowers to exchange funds and pursue a return on their financial assets. These parties may use these funds to finance projects or productive investments. Each system has a unique framework regulated by the government or similar organizations.

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.
This Youtube Video defines it very clearly, highly recommended to watch:


 

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