“Why do I need to learn about finance..
I am very good in my own area of
specialization”
How would you react to the above statement?
, Financial System
• For economic transformation of a country, the financia
system is the key for the institutional and functiona
vehicle.
• Finance assists in reducing the gap between the presen
and the future, and covers every aspect lik
channelization and effective usage of savings an
making an efficient investment.
• It formulates the base, the sets and the tone for th
accomplishment of wider national objectives.
,According to Robinson, the primary function of the financ
system is:
"To provide a link between savings and investment for the creati
of new wealth and to permit portfolio adjustment in the compositi
of the existing wealth".
According to Christy, the objective of the financial system is to :
"Supply funds to various sectors and activities of the economy
ways that promote the fullest possible utilization of resourc
without the destabilizing consequence of price level changes
unnecessary interference with individual desires".
, • A financial system acts as an intermediary where there is surpl
and deficiency of funds. It bridges the gap between the tw
segments
• It comprises of various institutions, markets, regulations, law
money managers, experts and many others.
In the context of "Financial System" the term system means
sequence of complex and closely attached variables like institutio
agents, practices, markets, transactions, claims and liabilities in
economy.
I am very good in my own area of
specialization”
How would you react to the above statement?
, Financial System
• For economic transformation of a country, the financia
system is the key for the institutional and functiona
vehicle.
• Finance assists in reducing the gap between the presen
and the future, and covers every aspect lik
channelization and effective usage of savings an
making an efficient investment.
• It formulates the base, the sets and the tone for th
accomplishment of wider national objectives.
,According to Robinson, the primary function of the financ
system is:
"To provide a link between savings and investment for the creati
of new wealth and to permit portfolio adjustment in the compositi
of the existing wealth".
According to Christy, the objective of the financial system is to :
"Supply funds to various sectors and activities of the economy
ways that promote the fullest possible utilization of resourc
without the destabilizing consequence of price level changes
unnecessary interference with individual desires".
, • A financial system acts as an intermediary where there is surpl
and deficiency of funds. It bridges the gap between the tw
segments
• It comprises of various institutions, markets, regulations, law
money managers, experts and many others.
In the context of "Financial System" the term system means
sequence of complex and closely attached variables like institutio
agents, practices, markets, transactions, claims and liabilities in
economy.
