FINANCIAL SYSTEM
Financial Concept To know more about the financial system we need to require the knowledge of the financial concepts. The financial concepts are Financial asset Financial institutions or intermediaries Financial market Financial asset Financial asset is one which is intended for production or consumption or further creation of assets. For example, an investor subscribing to the equity shares is acquiring a financial asset. He can expect an income from the company in the future. So financial instruments are indispensable for capital formation and faster economic development. There is a difference between financial assets and physical assets. Financial assets are intended or acquired for earning income. Physical assets are not useful for further production of goods or earning incomes generally. Classification of Financial Assets Financial assets Can be Classified differently from different points of view. Usually, they are classified as....