Role of Financial System

The financial system is the main part of running the economy smoothly. financial system provides the flow of finance in the economy. which leads to the development of the country financial system show the strength of the country.

Role of Financial System
Role of Financial System

Role of Financial System

1. It serves as a link between saver and investor
2. It helps in channelizes the flow of savings into productive investment
3. Its assets in the selection of the project to finance and also reviews the performance of such project periodically
4. It provides a payment mechanism for the exchange of goods and services.
5. It provides a mechanism for the transfer of resource across geography boundaries.
6. It provides a mechanism for managing and controlling the risk involved in mobilizing, saving, allocation and credit
7. It promotes the process of capital formation by bringing together the supply of saving and demand for an investable fund
8. It provides you detailed information to the operator and player in the market such as individual, household, government, etc
9. It promotes the saving of the individual
10. It helps in the growth of the nation.
11. Provides contracts for managing risk such as insurance, futures, and options.

Also Read
Functions of Financial System in India
Characteristics of Indian Financial System
Structure of Indian Financial System

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