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EdinburghNapierUniversityBA(Hons)inAccountingEdinburghNapierUniversityFinancialsystemreferstoallfinancialintermediaries,financialmarketsandfinancialinstruments.Forthepromotionoftheeffectiveflowoffunds,toadvanceeconomicgrowth,thefinancialsystemplaysanimportantrole.Anyeconomicunitanditsbalanceofpaymentscannotalwaysbeinequilibrium.Therefore,thecurrentcashinflowsisgreaterthanthecashoutflowthathaveexcessfundsavailableforlending,tobecomefundprovider;However,ifthecurrentcashoutflowisgreaterthancashinflowsthatgeneratedemandforcapital,tobecomefundneeds.Thepurposeoffinancialmarketsorfinancialintermediariesistofundprovidersandfundneedsbyefficientlymatchtogether,sothatthefundscaninteractsmoothly.FinancialSystemcanbedividedintotwoparts:financialmarketsandfinancialinstitutions.
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