Many activities associated with finance such as saving, payment of things, giving or getting credit; do not necessarily require the use of money. In the first place, the conduct of international trade has been facilitated. The development of the pecuniary unit in the various commercial nations has given rise to an international denominator of values. The pecuniary unit makes possible a fairly accurate directing of capital to those parts of the world where it will be most productive. Finance refers to the financial system in a rudimentary or traditional economy, that is, an economy in which the per capital output is low and declining over a period of time. The financial organization in rudimentary finance is characterized by the absence of any financial instruments of the saving deficit units of their own which they can issue and attract savings. Financial system is that there are no markets where firms can compete for private savings.
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on July 3 2010
The financial system of a country can make or break its economy. It has to be well planned and accurate. It can impact profits and deficits.
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on July 19 2010
Financial system is the backbone of the world’s economy. It is an important aspect for allocation of resources without which effective functioning cannot take place.
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on July 21 2010
Finance is not only associated with money. Investments in stocks and shares are also an effective way of accommodating resources without the use of liquid cash.
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on August 17 2010
The importance of an economy’s financial system cannot be underestimated. If an economy wants to recover, its financial system should be back on its feet.