financial system
Money movement network
A financial system is the network of institutions, markets, and instruments that facilitate the flow of money through an economy.
This includes banks, stock exchanges, insurance companies, and regulatory bodies.
The term often appears in discussions of economic stability: The 2008 crisis exposed weaknesses in the global financial system.
A well-functioning financial system channels savings into productive investments.
- central bankNational currency management institution
- lender of last resortEmergency credit source for banks
- bankPlace holding deposits
- monetary policyCentral bank economic controls
- currencyMedium of exchange
insurance company · regulatory agency · bond market · fiscal policy · stock market · bond · Dodd-Frank · pension fund · systemic risk · too big to fail · financial contagion · credit crunch · bank run · liquidity · inflation · exchange rate · capital flows · mutual fund
financial systembarter
Direct goods-for-goods exchange
barter system · barter economy · direct exchange · gift economy
financial systemsubsistence economy
System without market surplus
autarky · self-sufficiency · black market · underground economy · shadow economy