What Is Financial Environment,definition ,importances?


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Greg Allen answered
The financial environment is the effect of different functions of the economy on the financial outcomes of a country, or area.

It is important to observe the different functions continuously. This is because countries need a healthy financial environment to operate successfully. The functions that enable a country to operate healthily include the wealth of the country and the assets and liability a country has.
The investments a country makes should be sound and sustainable over a period of time, and any financial assets it has should be monitored closely. Most countries have assets that enable the growth and sustainability of the country. Some countries' main assets include precious metals such as gold and diamonds, and oil. By marketing these assets to other countries, the economy of the country can remain steady and should enable a liquid financial environment.
The treasury of a country is normally responsible for controlling the financial dealings of that country. This includes controlling the finances of the country, and what money should be spent on to benefit the country as a whole. It is also responsible for taxation and is where the currency of a country, as well as where its precious assets are kept.

Some countries' treasuries have more responsibilities than others, the main responsibilities of the United States treasury include:
  • Managing the federal finances
  • Collection of taxes
  • Collection of debts and other monies owed to the country
  • Deciding on investments abroad
  • Managing the national debt
  • Enforcing federal laws, with regard to taxation

The Secretary heads the treasury and other important roles in the treasury are the Deputy Secretary, Financial Officers and Inspector Generals.

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