#380 What is the difference between financial

What is the difference between financial - Business Statistics

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What is the difference between financial and economic activities how do they differ and what is the effect of financial environnent on economy of a nation.

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This is a huge question, especially in light of the currentsituation our nation (world) faces. Here's the quick version:

 

Financial activity is the flow of capital between entities.This can be done to pay for things, or as a means to park capitalfor investment of varying durations... between one day and severalyears.

 

Economic activity is the overall activity of an economy: Theuse of capital to either MAKE THINGS or to provide services toothers. Both require capital, but some of these activities arestrictly financial in nature, whereas other activities are activelyproviding what's necessary to MAKE THINGS (or provide service toothers).