A financial market and banks both play significant roles in the economy, but they differ in their functions, structure, and operations. Understanding these differences can provide a comprehensive view of how money flows within an economy. A financial market is a platform where various financial instruments, such as stocks, bonds, currencies, and derivatives, are bought and sold. These markets facilitate the exchange of securities between buyers and sellers, allowing individuals and institutions to invest, save, or raise capital. Financial markets can be divided into two main categories: money markets and capital markets. Money markets deal with short-term borrowing and lending, while capital markets cater to long-term investments. Financial markets operate through various channels, including stock exchanges, over-the-counter (OTC) markets, and electronic trading platforms. Banks, on the other hand, are financial institutions that accept deposits and provide loans to individuals and bus...