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Financial System: An Introduction
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Every scholar on the financial markets has attempted a definition of the financial system. Ours is:
The financial system is a set of arrangements / conventions embracing the lending and borrowing of funds by non-financial economic units and the intermediation of this function by financial intermediaries in order to facilitate the transfer of funds, to create additional money when required, and to create markets in debt and equity instruments (and their derivatives) so that the price and allocation of funds are determined efficiently.