Financial Law of Kazakhstan Introduction #2

of financial sector and financial market in the economy

their labor and entrepreneurship to the firms in exchange for

wages and profits (Factor Payments)

Firms employ land, labor, capital, and entrepreneurship (Factors of Production) in order to provide goods and services

public goods & services such as national defense, police, fire

protection, schools, libraries, and roads.

Public sector purchases some of the factors of production from households and some goods and services from firms.

Government income is taxes levied from individuals and firms

sector refers to the rest of the world.
Some of the domestically

produced goods and services are exported to other countries. At the same time country imports goods and services from the rest of the world.

Factors of Production (labor, land, capital) are also traded between countries in exchange for foreign factor payments (if imported) and in exchange for foreign income (if exported).

the use of debit cards, credit cards, cash drawn from

ATMs, or in the case of exports and imports, foreign exchange.

In the factor market, the story is the same, most citizens receive income not in cash but on debit cards.

The financial sector, or intermediaries like banks and stock exchanges, help to facilitate all of the above mentioned transactions.

money — they also save.
Savings flow to financial intermediaries and

from there to all sectors of the economy.
When households save, they may buy shares of stock, bonds, or certificates of deposit. Government finances its spending in excess of taxes by issuing the various treasury securities.
Central bank that links government to the financial intermediaries acts like a heart that pumps money into the economy's circulatory system.