Financial Law of Kazakhstan

Key objectives
Understanding the functioning of any Economy
Understanding the role of financial sector and financial market in the economy

Plan
Private Sector
Public Sector
Foreign Sector
Financial Sector
Financial Market

The Private Sector
Players of Private Sector:
Households
Firms
Households sell 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

The Public Sector
The public sector refers to all levels of government
Government provides 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

The Foreign Sector
The economy does not exist in isolation. The foreign 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 Financial Sector
The transactions in the product market either involve 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.