ranjan

The growth of different sectors in the economy is balanced through the financial system. The financial system funds the sectors by providing funds for industrial, agriculture and services sector. The three major functions of financial system are:- 1)  Liquidity provision - Banks and financial services offer to buy and sell securities as per      need and in large amounts to fill the usual and sudden requirements of stake holders. 2)  Credit provision - Govt. invests in infra - structure projects by correcting spending,       and reducing the cycles of tax revenues. Individuals can purchase homes and business       can invest more than the cash they have and other utilities without saving entire amount       in advance. Banks and other financial services provide credit facilities  to the stake       holders. 3)   Risk Management Service - Finance provides Risk management from risk of financial       markets and commodity prices by pooling risks. Derivative transactions enab