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

Summary

This 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.