ICT-ED INSTITUTE OF SCIENCE AND TECHNOLOGY LIPA

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III. Activity

Name: Kristle Joy Dimayuga Date: August 26, 2021

Course: BSAIS

ACTIVITY 1: ESSAY!

Read and analyze what is being asked, before you begin writing, read the question carefully and
plan what you will say. Your answer should be as well organized and as carefully written as you can make
it. Write your answer on the space provided.

Criteria Points
Organization and Content 50%
Grammar 30%
Neatness 20%
Total 100%

 What are the functions of a financial system? Explain your answer.

A financial system is a network of financial organizations such as insurers, stock markets and
investment banks that cooperate in exchanging and sharing funds between locations. The financial system
makes the transmission of funds more efficiently. It provides a payment system for the exchange of goods
and services. Investors get funds through the financial system to finance projects and obtain a return on
investments. It is an effective instrument that contributes to a country's economic growth by connecting
investments and savings to the production of wealth. The financial system gets money from people who
keep it unused and distributes it to those who use it for profit and wealth in the economy. It has an effective
role to play in reducing the risk by spreading funds among several people.