Financial system and it's functions (sybms) lecture 1

M.L.Tutorial

21 Jun 202004:59

Summary

TLDRThis tutorial introduces basic financial services for school students, focusing on financial systems, which include institutions, instruments, and markets that promote savings and efficient usage of financial resources. It covers the functions of financial systems such as payment systems, pooling of funds, and investment channels like mutual funds and insurance policies. The video emphasizes the importance of decentralized information and liquidity in financial markets, aiding investors from various countries. Viewers are encouraged to like, share, and subscribe for more informative videos on business planning and management.

Takeaways

📚 The channel is focused on Basic Financial Services, primarily aimed at school students with a subscription to Business Planning and Management subject.
🔗 For those who haven't seen the video, a playlist link can be found in the description box.
🌐 The topic of the day is 'Financial System', which collectively refers to financial institutions, instruments, and markets that facilitate the transfer of financial resources.
💼 A financial system connects two individuals, one who has a surplus and another who has a need for funds, facilitating the transfer between them.
🏦 Banks are part of the financial system, allowing for the transfer of funds and linking people who need money with those who have it.
💡 The financial system also includes pension systems and final systems that clear transactions, ensuring the smooth functioning of the economy.
📈 Investment opportunities are available through subscriptions, where one can invest and receive returns in exchange.
🤔 For those lacking investment knowledge, mutual fund agents can provide expert advice and investment planning to minimize risk.
💼 Mutual funds are managed by experts from the company who will plan investments to reduce risk and provide insurance policies for subscribers.
🌍 Investors in financial markets can be from various countries, emphasizing the importance of providing important information to all market participants.
📉 The financial market involves a significant interaction in the price discovery process, where the final information is derived from SIM (not clearly defined in the transcript).
💹 Liquid pension systems provide liquidity, allowing investors to convert their investments and add funds at any time.

Q & A

What is the main topic of the tutorial video?
-The main topic of the tutorial video is 'Financial System', explaining the concept, components, and functions of financial systems.
What does the term 'Financial System' collectively refer to in the context of the video?
-In the context of the video, 'Financial System' collectively refers to financial institutions, instruments, and markets that facilitate the transfer of financial resources from one place to another.
What is the purpose of a financial system according to the script?
-The purpose of a financial system is to transfer financial resources, such as through pension systems, and to link people who have funds with those who need them.
How does the script describe the function of a payment system within a financial system?
-The script describes the function of a payment system as providing different types of payments within the financial system, allowing for the transfer of funds between parties.
What is the role of a mutual fund in the context of the video?
-In the context of the video, a mutual fund plays the role of an investment agent, where the experts from the mutual fund company plan investments for individuals to minimize risk and provide returns.
What does the script suggest for individuals who lack investment knowledge?
-The script suggests that individuals who lack investment knowledge can invest through a mutual fund agent, where the investment is planned by experts to reduce risk.
What is the importance of providing important information to investors in financial markets as per the script?
-Providing important information to investors in financial markets is crucial as it helps them make informed decisions and ensures that they are aware of the risks involved.
How does the script explain the concept of liquidity in financial systems?
-The script explains the concept of liquidity as the ability to convert investments into cash, allowing investors to add funds at any time and providing the market with the necessary liquidity.
What is the significance of the price discovery process in financial markets as mentioned in the script?
-The price discovery process in financial markets is significant as it involves active interaction and provides final information about the market, which is essential for making investment decisions.
What does the script imply about the diversity of investors in financial markets?
-The script implies that investors in financial markets can be from various countries, emphasizing the importance of providing important information to all investors regardless of their location.
How can viewers engage with the channel according to the script?
-Viewers can engage with the channel by liking and sharing the video, and by subscribing to the channel for new videos with new topics.

Outlines

00:00

📚 Introduction to Basic Financial Services

This paragraph introduces the channel 'Basic Financial Services' aimed at school students. It encourages subscription for topics like business planning and management. The speaker mentions a playlist link in the description box for those who haven't seen the related video yet. The topic of the day is 'Financial System', which is explained as a collective term for financial institutions, instruments, and markets that facilitate the transfer of financial resources, like a pension system, providing a link between people with different currency needs.

Mindmap

Keywords

💡Financial System

A financial system refers to the network of institutions, instruments, and markets that facilitate the creation, allocation, and management of financial resources. In the video, the term is used to describe the collective infrastructure that includes financial institutions, instruments, and markets, which is essential for transferring financial resources from one place to another, such as in pension systems.

💡Financial Instruments

Financial instruments are tradable assets such as stocks, bonds, and derivatives that are used to raise capital, transfer risk, or invest. The script mentions financial instruments as part of the financial system, indicating their role in facilitating the movement of financial resources.

💡Markets

Markets in the context of finance refer to the various platforms where buyers and sellers come together to trade financial instruments. The video script discusses markets as integral to the financial system, emphasizing their function in promoting savings and investments.

💡Pension System

A pension system is a defined contribution plan where individuals contribute to a pool of funds that are later distributed to them upon retirement. The script uses the term to illustrate a financial system that links two individuals, transferring funds from one to another based on need.

💡Transfer

In the financial context, a transfer refers to the movement of money or assets from one account or entity to another. The script mentions the ability to transfer funds within a bank account and the role of pension systems in transferring funds between individuals.

💡Investment

Investment in the script pertains to the act of allocating resources with the expectation of generating a financial return. It is a key concept as the video discusses investment through subscription markets and the role of mutual funds in managing investments for those lacking investment knowledge.

💡Mutual Fund

A mutual fund is an investment vehicle that pools money from many investors to invest in a diversified portfolio of stocks, bonds, or other assets. The video explains that a mutual fund company's experts can plan investments for individuals, reducing risk and providing insurance policies as an example.

💡Insurance Policy

An insurance policy is a contract that provides financial protection or reimbursement against losses. In the script, it is mentioned as a service provided by mutual funds to minimize risk for investors, ensuring that their investment information is decentralized.

💡Decentralized Information

Decentralized information refers to data that is not stored or controlled in a single location but is distributed across multiple sites or systems. The video script uses this term to describe how investment information is managed in financial markets, allowing for a diverse group of investors from different countries.

💡Liquidity

Liquidity in finance is the ability to convert an asset into readily available cash without affecting its price. The script discusses liquidity in the context of a liquid pension system, where investors can add funds at any time without affecting the market.

💡Price Discovery Process

The price discovery process is how market participants determine the price of a financial instrument based on supply and demand. The video script mentions this process as a significant interaction within financial markets, which provides final information to financial instruments.

Highlights

Welcome to Mill Tutorials where we'll be subscribing to a lecture series called Basic Financial Services aimed at school students.

The lecture series focuses on Business Planning and Management. Subscribe to this channel if you haven't already.

The topic for today is the Financial System, which includes institutions, instruments, and markets that promote savings and channel them to the most efficient use.

Financial systems include institutions, financial instruments, and markets, collectively facilitating the transfer of financial resources.

Payment systems allow for various payment methods, including transferring money to bank accounts.

Pooling of funds connects people who need money with those who have surplus funds, enabling efficient resource allocation.

Investing in the market can yield returns, and mutual funds offer a way to invest with expert management, reducing risk.

Mutual fund agents and companies provide investment plans, making it easier for individuals without investment knowledge to participate.

Insurance policies minimize risk and provide security for assets.

Decentralized information helps investors from different countries access important market information.

Financial markets facilitate price discovery through interactions that provide critical information for investment decisions.

Liquidity in financial systems means that investments can be converted to cash quickly, allowing for flexibility.

Various investment options in the market offer liquidity, making it easier to access funds when needed.

If you liked this video, please like, share, and subscribe to my channel for more topics on financial systems.

Thank you for watching the video, and stay tuned for more content on new topics.