Financial Services

Lecture 01: Introduction to the Subject.

#1. What is an Economic System?

An economic system is a means by which societies or governments organize and distribute

available resources, services, and goods across a geographic region or country. Economic
systems regulate the factors of production, including land, capital, labor, and physical resources.
An economic system encompasses many institutions, agencies, entities, decision-making
processes, and patterns of consumption that comprise the economic structure of a given
community.

#2. What is economic activity?

Economic activity is the activity of making, providing, purchasing, or selling goods or services.
Any action that involves producing, distributing, or consuming products or services is an
economic activity. Economic activities provide employment, wages, and products and services
throughout the world.

# 3. What is an Economy?

An economy is the ecosystem & a larger set of inter-related production, distribution &
consumption activities that aid in determining how scarce resources are allocated.

#4. What is Economic Development?

Economic development ideally refers to the sustained, concerted actions of communities and
policymakers that improve the standard of living, involves development of human capital,
increasing the literacy ratio, improvements in infrastructure, health, safety and others areas
that aim at increasing the general welfare of citizens.

#5. What are Macro Variables in Economics?

Macroeconomic variables are associated with economic aggregates: a country, a region, the
population of a country, all companies in a country. For example, the aggregate production of a
country is formed with the production of all its businesses, families, individuals, and its public
sector. Other commonly used variables in the study of macroeconomics are inflation GDP, Govt
Spending, Interest Rate, Exchange Rates and unemployment.
# 6.Components Of Financial System:

# 7. Financial Institutions:
#8 Financial Markets:

#9 Financial Instruments :
#10 Financial Services :

#11 Financial Regulators:

The above Tables have been sourced from the Book: Indian Financial System, Second Edition,
Sujatra Bhattacharyya, Oxford University Press.