Question

the role of the generation of the information in the financial system: deriving malfunctions-characteristic examples and respective remedies .

essay

Answer 1

Ans; The role of information in Financial System

The Financial system is the composed of financial market, stock market, banking, insurance,etc.These financial sector control the economy of country. The overal production, manufacturing, stock market exchange short term or longterm investment are very sensitive to information which are either generated by government or department of governemnt agencies taht have major impact on the country's functionalities.

The information generated have floated in the various websites of news chanel, offline print media, social media, etc which control or influence the behaviour of investors towards investment motive.

If we talk about the inflation rate of economy increase by some decimal, which is closely associated to the stock market exchange and price fluctuation. it create investment thoughts that can change the attitude either withdraw investment or reinvest for future is the question mark.

The information which are circulated among the public might be false or true, which have a drastic impact on the investment. The stock price fluctuation which generates an earning among the investors.The optimal crowdfunding security design always harness the investors' investment wisdom.

The rates of investment avenues like some inetrest rate for some schemes are different for banks that are changed or updated differently . this information when circulated among the public have direct impact on the financial institutes.

Threre are some malfunction arise in the market which is due to flow of false information which can be well corrected by media or governemnt official by passing of time but it will create some threat to fiancial institutes as well as for public.The notion is that population's collective wisdome often dominates even the most accurate judegement of individual with in a group. Thse can be influenced by some legendary investment leader who have direct influence that can control the this wisedom very carefully.