It is one of the crucial parts of an economic system as it allows cash to circulate in the country’s economy. The system is formed by: • domestic and foreign factors • households and enterprises functioning in the markets • regulatory setting of the system of finance • infrastructure of the financial system • institutional units • national central banks; investment funds open pension funds; insurance companies as well as various entities engaged in brokerage activity.
The financial system operates in a turbulently turbulent environment, which is accompanied by risks such as: • system-related economic risk + political risk + financial risk • structural (economic imbalances + institutional inefficiencies) • legal (loophole)
Do Poles know what the financial system is, what the financial market is that constitutes a money, capital market as well as a derivatives market? All research conducted on this is indicating a particularly low level of awareness on this issue by the Polish public. For the needs of this paper, I develop below a working definition for financial consciousness, which is understood as follows: Economic culture is associated with the management of resources possessed by an individual, acquired and owned by the individual due to the course of life, upbringing and the influence of external factors.
Let us remember everybody that modern economic development depends on culture and not on physical capital. Financial literacy, or in other words, advancing financial consciousness involves the following: • Creation of a saving culture • Formation of a habit of investing • Feeling aware of finance as a long-run factor in well-being for an individual, but not only on short-run practical use • Ability to measure the financial impact of goods offered in financial markets in order to make the right personal choice.
Such objectives are also dealt with by economic education which has found a place under the larger canvas of economic education we discussed earlier. The OECD outlined principles and best practice for education and financial literacy. These are:
• Government and other stakeholders should promote objective, ethical and coordinated financial education,
• Financial education should start in school to enlighten people as early as possible,
• Financial education should incorporate best practice in financial institutions, which would also support enhancing their reputation,
• Financial education should be strictly separated from business communication; standard procedures will be developed for staff working in financial institutions;
• Financial institutions will ensure that the customer understands the information provided, especially in relation to long-term liabilities or in relation to complex financial services that have a financial impact:
• Writing fine print or unintelligible documentation is prohibited,
• Financial education must focus specifically on key areas of personal finance. finance, such as: basic savings tools, loan types, insurance, provision of old age,
• programs have to focus on capacity building for financial education and be applicable to the target areas with individual background,
• future pensioners have to be encouraged to check their pension solutions national promotion should be encouraged to promote the use of financial information through web sites and information services no charge, no cost no cost web sites that can increase risks, such as fraud, for example, when, when applied by customers using financial services. OECD, 2006). Taking into account all the above-mentioned facts, it can be assumed that money is the most important security factor in the financial system of every state.
Conclusions
The first conclusions that arise from this study are that virtual money has an impact on the risk of the state system, and therefore, on central banks, which have to consider them in details, calculating the amount of money in circulation. The second, although not so obvious, is that the money that finds itself in the final phase of the European Union’s founding of the euro behaves itself in the way that the theory of the product life cycle explains it, as any product does throughout the life of its product.
Read Also:
- Bitcoin Money
- Artificial Money And Its Lifecycle
- Historical background Of Money
- Introduction: The Nature Of Money
- Money: Concept, Functions and Role
- Demerits / Disadvantages Of Money
- Forms Of Money
- Evolution Of Money
