Final answer:
The two major components of the financial system in the United States are private savings and public savings, including inflows of capital from foreign investors and demands such as private investment and government borrowing.
Step-by-step explanation:
The two major components of the financial system in the United States are private savings from inside the U.S. economy and public savings. The former relates to savings by individuals and firms which is often accumulated in savings and investment accounts. In contrast, public savings come from the government's budget surpluses, which occurs when the government collects more in taxes than it spends. Another way to look at it is through the supply and demand for financial capital. The main sources for the supply of financial capital are private savings (S) and inflows of financial capital from foreign investors, which are typically the consequence of a trade deficit. On the demand side, financial capital is primarily used for private sector investment (I) and government borrowing when government spending (G) exceeds tax revenues (T).