The relationship between financial systems and economic development is complex. Different societies choose different financial services based on their economic environment. Financial structures are influenced by factors like risk, information costs, and transaction costs. These structures can impact investment decisions and growth rates. Public policies play a crucial role in shaping financial activities, affecting economic growth and the level of financial development. The types of financial services provided by a society's financial sector can influence its growth rates. Traditional measures of financial development may not fully capture all aspects of financial growth.