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What are the main functions of the financial systems?
The main functions of financial systems in short are as follows:
a. Give the mechanisms by that funds can be transferred through units in surplus to units with a shortage of funds so as to directly or indirectly facilitate borrowing and lending
b. make possible wealth holders to adjust the composition of their portfolios
c. Give payment mechanisms
d. Give mechanisms for risk transfer.
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SCENARIO You have just moved out of home and have a part-time job that pays you $18 per hour after tax (you work 20 hours a week). You also have $5000 in a savings account. You
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