[ Keywords: Definition Financial Sector of the Economy. Definition of Real Sector of the economy. Branches of Economy. Sectors of Economy ]
In economy there are two sector. One is Real Sector and the other is Financial Sector. In this article I will write about these topics broadly. I hope this article will be good enough for you.
Topics to be covered:
1. Real Sector
2. Financial Sector
3. Branches of Real Sector
Real Sector:
The real sector of an economy is the sectors that produce goods and services. For example: Yellow is one of the most popular brand in Bangladesh. It produces cloths. It is a part of real sector.Financial Sector/ Monetary sector:
Financial sector engages in taking the surplus money from one sector to another sector which has deficit of money. For example: A is a company which has earned $10000 in July. It spent $8000 as operating cost. After paying dividend Its balance stood at $1000. The company deposited $500 in a bank. It is the surplus amount of money. B is a company which is in need of loan. So it has deficit of money. Bank provided him $300. From where did the bank got the money. It got the money from the deposit created by company A.Branches of Real Sector:
There are two branches of real sectors. The first one is the primary sector and second one is the secondary sector.Primary sector:
It is a sector which extract something from nature or earth or creature. It doesn't create anything.For Example: A farmer harvest crops. He doesn't create it.
Secondary Sector:
This sector creates goods and services by changing the formation of another good.For example: Harvesting crops is in primary sector. But when we use them to create something new it is called secondary sector. Service sector is also a part of secondary sector which is a branch of real sector
To sum up:
An economy has two branches of sector. We can sort them all in those sector. One is Real sector and the other is financial sector or some says monetary sector. Both of them has great importance. One sector directly creates goods and services while the other sector support it with surplus amount of money. In real sector there are also two branches of sector.I hope you are now clear about this topic. If this article is helpful to you then please share it and if you don't understand some part please comment bellow this article. I will do my best to help you.
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