Financing system:
When our income is more than our need,we need financing institutions
to save that money and to earn profit from that.Thus the financing
institutions keep our surplus income or saving as deposits and lend it
to the persons who need money.Therefore the process of collecting
money as deposits and providing loans, is known as financing system.
Thus the process of maintaining balance between demand and supply of
wealth or capital in the economy is called financing system.
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