financial systems
Economic transaction frameworks
Financial systems are the interconnected networks of institutions, markets, and instruments that facilitate the flow of money through an economy.
This includes banks, stock exchanges, payment processors, and regulatory bodies that together enable borrowing, lending, investing, and transactions.
The 2008 crisis revealed how fragile financial systems can be when major institutions fail.
A country's financial system determines how capital moves from savers to borrowers and how risk gets distributed across the economy.
- stocksOwnership stakes or inventory
- bankPlace holding deposits
- central bankNational currency management institution
- too big to failRequiring rescue due to scale
- bond marketVenue for debt securities
bonds · credit union · capital requirements · regulatory agency · money laundering · stock market · market crash · clearinghouse · payment processing · insurance company · currencies · risk assessment · mutual fund · systemic risk · credit default swaps · fiscal policy · investment firm · auditing
- systemsecosystems, ecosystem, biological systems, transportation network, communication systems
- critical infrastructurepower grid, air traffic control, communication networks, healthcare systems, emergency response
- developmentgrowth, progress, advancement, expansion, improvement
- economicssupply and demand, inflation, GDP, GNP, gross domestic product
- infrastructurehighways, road construction, railway expansion, power grid, roads
- business resourcesbusiness directories, trade magazines, training guides, business strategy, investment guides
financial systemsbarter systems
Moneyless exchange arrangements
barter · direct exchange · commodity exchange · gift exchange
financial systemsautarky
Complete economic independence
self-sufficiency · command economies · central planning · planned economies · subsistence agriculture