Definition of Financial system:
The processes and procedures used by an organizations management to exercise financial control and accountability. These measures include recording, verification, and timely reporting of transactions that affect revenues, expenditures, assets, and liabilities.
A financial system is a set of institutions, such as banks, insurance companies, and stock exchanges, that permit the exchange of funds. 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. The financial system also includes sets of rules and practices that borrowers and lenders use to decide which projects get financed, who finances projects, and terms of financial deals.
Like any other industry, the financial system can be organized using markets, central planning, or some mix of both.
How to use Financial system in a sentence?
- A financial system is the set of global, regional, or firm-specific institutions and practices used to facilitate the exchange of funds.
- Institutions within a financial system include everything from banks to stock exchanges and government treasuries.
- Financial systems can be organized using market principles, central planning, or a hybrid of both.
- You need to know all of the ways the financial system works and try to find a way to make the most out of it.
- You need to be able to use the financial system to your businesses advantage so that you can make the most out of it.
- The financial system that was in place was full proof and ran so smoothly it made us all very happy and excited.
Meaning of Financial system & Financial system Definition