Complexities of the U.S. Financial System
Complexities of the U.S. Financial System: The financial system of a state plays a very crucial role to the economy, to the business and individuals as well. The United States financial markets impact the economy of the nation in that it facilitates the flow of savings and investments towards the capital accumulation and production of goods and services. The financial markets shall thus be diverse in order to accommodate borrowers and lenders as well as financial products and instruments that can lead to the overall economic growth. The financial markets can impact the business in terms of the investments.
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The developing countries that depend on US for financial aid may experience instability in their economies because when the interest rates are high, the income of US reduces and it becomes difficult to meet its expenditures as well as provide financial aid. The financial system of United States is thus very essential because any changes tend to have a huge impact on the global financial system too (Madura, 2009).
Bernanke, B. (2013). The Federal Reserve and the financial crisis.
Madura, J. (2009). International financial management. Mason, OH: South-Western/Cengage Learning.
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