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The finacial system is one of the most pivotal inventions of the modern society. Today finance system is become most effective tool of every system in every area of field. There are fields, spheres, uints and people wid surplus funds and there are also those with deficiency of fund.The effective functioning of a financial system is of critical importance in the modern day economy which maneuvers he flow of funds from the units of surplus to the uints of deficit.
In the modern day international economic senario, a sound financial system is indispensable as it helps in production, capital distribution and economic development by promote the habit of savings and mobilizing savings from surplus sectors and investing in productive sectors like trade, commerce etc.
Thus finanacila system is a mechaism by which financial surpluses from the spheres ir areas in need of funds. It can raise the cost of funds, which adversely affects the consumption , production , employment, and development of the economy. Lowering the cost of credit can also all the factors in apostive direction.
The financial system of any country consits of specialised and non-specailsied finanacial institiutions ,finacial markets and finacial instruments which faciltates the transfer of surplus finacial resources.
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