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Financial system Financial system is the system that allows the exchange of funds between lenders, investors, and borrowers. A modern financial system may include           Financial institution           Financial market           Financial instrument           Financial services Then we looked out what are the function of financial system           Pooling of funds           Capital formation           Facilitates payment           Short and long term need           Risk function           Better decisions           Finance government need           Economic development Financial intermediation The most important thing in financial system is financial inter...