Description

Money and finance cannot boost the economy by themselves. The financial system has a significant role in the growth and evolution of an economy. This is accomplished by making it simple for individuals to save money and invest it wisely.

There are two categories of people in an economy: those who lend money and those who borrow it. People who lend money have a current income that exceeds their current expenses, whereas those who borrow money have a current income that falls below their current expenses. The objective of the financial system, which is comprised of numerous distinct but interconnected financial institutions, markets, instruments, and services, is to connect borrowers and lenders and facilitate the conversion of savings into investments.