Financial Functions in the U.S Financial System

          In the U.S economy, the government and private financial institutions of many kinds have developed instruments and procedures to perform the financial functions. These financial functions may, in turn, be viewed as characteristics of the financial system that evolved to support the U.S. market economy. The monetary system is responsible for creating and transferring money. Financial institutions efficiently accumulate savings and then lend or invest these savings. Financial institutions play important roles in the savings investment process both through financial intermediation activities and in facilitating direct investments by individuals. Financial markets, along with certain securities firms, are responsible for marketing and transferring financial assets or claims.