CS Executive SL & CM important topic FINANCIAL SYSTEM notes

Financial System helps to circulate funds in the economy in an efficient way. A sound financial system is necessary for every modern economy. A good and efficient financial system helps in production, capital, and economic growth as it encourages savings habits, mobilizing savings from households and other segments and allocating savings into productive uses such as trade, commerce, manufacture, etc.

A financial system covers both credit and cash transactions.

All the financial transactions are dealt with by cash payment or issue of negotiable instruments like cheque, bills of exchange, hundis etc.

Financial System operates at the global level. The fund moves, allocated and invested in the economic sectors.

FUNCTION OF FINANCIAL SYSTEM

Learn complete CS Executive SL & CM important topic FINANCIAL SYSTEM notes

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