1
THE FINANCIAL SYSTEM
2
Brief intro
Ing. Jan Oplatek, MBA
Client Operational Head
Banking & Capital markets
Infosys BPO
Equity, Bond, Derivatives & FX trader
M&A, corp. Finance
Retail banking management
Court aproved expert for Equity valuations
3
Content
1. The Economy System
2. The Financial System
3. Functions of the Financial System
4. Financial Institutions in the Financial System
4
1.The Economy System
The basic function of any economy is to allocate scarce resources.
The Economic System must combine inputs – land and other natural
resources, labor and capital equipment – in order to produce outputs
– in the form of goods and services.
The Economic System
The economy generates a flow of production in return for a flow of
payments.
Goods
and
services
Land
Labor
Capital
Flow of production
Flow of payments
5
Methods of Exchange
6
Money
Money is anything that someone is willing to accept in
payment for goods and services or to pay off debts.
1.The Economy System
The Czech Economy system :
Economic growth is above average,
Inflation is low,