What sector is responsible for the flow of capital and consists of financial organizations?

Disable ads (and more) with a premium pass for a one time $4.99 payment

Study for the GCSE Economics Exam with comprehensive flashcards and multiple choice questions. Each question includes hints and detailed explanations. Prepare thoroughly for your exam!

The financial sector is responsible for managing and facilitating the flow of capital within the economy. It includes a variety of financial organizations such as banks, investment firms, insurance companies, and other entities that provide financial services. These organizations play a crucial role in collecting savings, providing loans, facilitating investments, and managing transactions, which are essential for economic growth and stability.

In contrast, the services sector encompasses a wide range of industries that provide services rather than goods, including hospitality, healthcare, and education. The retail sector focuses on selling consumer goods directly to the public, while the manufacturing sector is involved in producing physical products. Therefore, while each of these sectors contributes to the economy, they do not specifically specialize in the management of capital like the financial sector does.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy