What is the difference between a financial product and a financial service

What is the difference between a financial product and a financial instrument Introduction: The Foundation of Finance Hello everyone, and welcome to this video on the distinction between financial products and financial instruments. Before we dive into the details, let's establish a foundation by understanding what these terms encompass. In the realm of finance, both financial products and financial instruments serve as tools for individuals and organizations to manage their money, invest, and mitigate risks. However, their specific characteristics and functions set them apart. Financial Products: The Broad Spectrum When we talk about financial products, we're referring to a vast array of offerings available in the market. These can include everything from simple savings accounts and fixed deposits to more complex options like insurance policies, mortgages, and loans. The defining feature of a financial product is that it's designed to fulfill a specific need or objective. For instance, an insurance policy provides protection against unforeseen events, while a mortgage enables individuals to purchase real estate. Financial products can be both tangible, like physical assets, or intangible, like contractual agreements. Financial Instruments: The Building Blocks On the other hand, financial instruments are the building blocks of the financial world. These are more specific and standardized tools that facilitate the flow of capital and the trading of assets.