What are some of the Complexities of the US Financial System?
A financial system is determined by the amount of goods and services sold and bought.
The US is not an exception to this complexity. The more the economic deteriorations in the US
markets, the higher the complexities in the financial system. The financial system requires the
entire population to invest in businesses either through importing, exporting, buying or selling of
goods and services for positive results. Therefore, the economic situation highly determines the
financial system in the US.
The agricultural sector is the major segment that drives United States economy. In
adverse effects of crop production, the entire economic situation deteriorates. Under such
circumstances, fuel prices may shoot up leading to less purchase rates (Fund 7). Therefore,
goods and services consumption rates are inversely proportional to the rate of production. Such a
situation may lead to spoilage hence, greater losses than expected from the sellers.
High inflation rates are mainly caused by shortages. Whenever there is scarcity of a
commodity, the economic system is negatively affected. In some situations, some vendors may
cause artificial shortages of goods in order to benefit financially (Fund 7). The economy also
depends on the labor force and technology. The higher the technological and labor production
rates, the more the goods production and thus, more goods are bought faster and at a cheaper
price. In such a scenario, the economic status of the United States is bound to thrive.
Conclusively, the economic situation of the US determines the status of the financial
system. Buying and selling of services and goods are the main factors that determine the
economic status which are overly dependent on the rate of production. The higher the production
