🎯 Goal: Know the main parts: commercial banks, the State Bank, the stock market, and their roles.
The financial system links savers and borrowers. Commercial banks take deposits/lend; the State Bank manages money supply; the stock market lets firms raise capital.
Let’s explore
🏦
Commercial banks: take deposits, lend, handle payments.
🏛️
The State Bank: manages monetary policy, stabilizes the currency.
📈
The stock market: where firms raise capital and investors trade stocks/bonds.
Practice activity
💬 A firm wants large capital to expand — where in the system can it find it?
Worked example: A firm can borrow from commercial banks, or issue stocks/bonds on the stock market to raise capital from many investors. The State Bank keeps the system stable.
Quick quiz
1. Commercial banks do what?
→ Take deposits, lend, pay
2. The State Bank’s role?
→ Manage money, stabilize currency
3. The stock market helps firms?
→ Raise capital from investors
4. The financial system links?
→ Savers and borrowers
5. A firm needing large capital can?
→ Borrow or issue stocks/bonds
🎯 Real-life mission
Research and summarize the central bank’s role in two sentences.