The financial system that supports the economy of a country is known as the financial system or financial sector. This system encompasses a complex network of institutions, markets, and instruments that facilitate the flow of funds between savers and borrowers. It includes banks, stock markets, insurance companies, and other financial entities that provide services such as lending, investment, and insurance. A well-functioning financial system is essential for economic growth and stability, promoting capital formation, enhancing liquidity, and fostering efficient allocation of resources within an economy.