Explain the Six Functions Performed by the Financial System

question 95

Essay

Explain the six functions performed by the financial system.

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Definitions:

Agricultural Labour

Work involved in cultivating crops and livestock, often characterized by physical labor and seasonal employment in rural areas.

Feudalism

Was a legal arrangement in preindustrial Europe that bound peasants to the land and obliged them to give their landlords a set part of the harvest. In exchange, landlords were required to protect peasants from marauders and open their storehouses to feed the peasants if crops failed.

Social System

An organized set of interrelated structures that function together to maintain balance within a society.

Progressive Tax

A taxation system where the tax rate increases as the taxable income or amount increases, placing a higher burden on those who have the ability to pay more.