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Financial Market:
Being entrusted with different functions having macro level implications on the nation's economy, the financial system tries to fulfill its role through the financial markets. The financial markets channelize the savings of the households and other surplus budget units to those individuals and institutions that need funds. While performing this role, the financial markets aid in increasing production and income for the various units. The importance of these markets to the financial system can be understood from the quantum of funds that are made available to the borrowers.
You deposit $3,000 in a back account that pays 10% annually, how much would you have im your account after 5 years?
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