Financial Sector
Definition
The financial sector refers to the part of the economy that deals with the management, investment, and allocation of money. It includes institutions such as banks, credit unions, insurance companies, and stock exchanges.
Related terms
Lenders: Lenders are individuals or institutions that provide money to borrowers in exchange for repayment with interest.
Borrowers: Borrowers are individuals or businesses that receive money from lenders with an agreement to repay it over time, usually with interest.
Interest Rates: Interest rates are the cost of borrowing money or the return on lending it. They determine how much borrowers have to pay back and how much lenders earn.
"Financial Sector" appears in:
Study guides (1)
AP Macroeconomics - 4.1 Financial Assets
Are you a college student?
Study guides for the entire semester
200k practice questions
Glossary of 50k key terms - memorize important vocab
About Us
About Fiveable
Blog
Careers
Code of Conduct
Terms of Use
Privacy Policy
CCPA Privacy Policy
Resources
Cram Mode
AP Score Calculators
Study Guides
Practice Quizzes
Glossary
Cram Events
Merch Shop
Crisis Text Line
Help Center
Stay Connected
© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
About Us
About Fiveable
Blog
Careers
Code of Conduct
Terms of Use
Privacy Policy
CCPA Privacy Policy
Resources
Cram Mode
AP Score Calculators
Study Guides
Practice Quizzes
Glossary
Cram Events
Merch Shop
Crisis Text Line
Help Center
© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.