In the first chapter of the report (Global Financial Development Report 2014) the main focus is on financial inclusion and exclusion. The chapter describes that financial systems provide different types of financial services to individuals and businesses. The fundamental purpose of the report is to identify the main role of financial inclusion in economic development. The absence of financial inclusion in the economy causes poverty and slowdown in economic growth. So in this chapter we will discover why there is financial exclusion in the economy causing continued income inequality and slow growth. Financial inclusion: means the number of individuals, groups and companies that use financial services. They use these services for different purposes. But there is a difference between use and access, some have access but don't know how to use it and some use these services. So there are many people who use financial services and some who don't. In non-user individuals and companies there are a variety of reasons why some do not use because they do not need to, religious and cultural reasons, indirect access, high risk and insufficient income, asymmetric information and market imperfections. If high prices cause high population exclusion this demonstrates regulatory barriers and lack of competition. The market providing financial services is different from the commodity market. In an article published in 1981 by Stiglitz and Weiss they give explanations on the differentiation of the market, in particular of credit and insurance. These markets present the serious problem of adverse selection and moral hazard. Unintentionally excluded users face problems in the market due to asymmetric information. Even in financial institutions... half of the paper... scenario t. For short term loans people opt for credit cards but compared to the global scenario its usage is still less in developing countries. Because credit cards have made short-term credit much easier, adults in high-income economies do not turn to financial institutions for short-term credit. But when we analyze the normal trend of credit, then we can see that people choose formal sources of credit in high-income economies while in terms of low-income economies they choose informal sources and reports have shown that social norms are one of the factors towards such trend. trends. This trend also changes as economies change and is influenced by individual characteristics such as health problems. There are also large differences in mortgage usage data in terms of income levels as it is higher in higher income economies while it is lower in lower income economies..