Financial system (institutional units and markets that interact, typically in a complex manner, for the purpose of mobilizing funds for investment, and providing facilities) :

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Instutitions

Commercial Banks

Insurance Companies

Investment Banks

Brokerages

Financial markets

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Stock Markets

Bond Markets

Derivatives Markets

Derivatives Markets

Services

Provide loans

Keeping money safe while also allowing withdrawals when needed

Intermediation or advisory services

Instruments

Asset

Loans

Bonds

The role of financial institutions within the system is primarily to intermediate between those that provide funds and those that need funds

Financial markets provide a forum within which financial claims can be traded under established rules of conduct

In direct finance borrowers borrow funds directly from lenders in financial markets by selling them securities (also called financial instruments), which are claims on the borrower’s future income or assets

Financial services are the economic services provided by the finance industry, which encompasses a broad range of businesses that manage money