Define the Terms Financial Sector and Real Sector

question 56

Essay

Define the terms financial sector and real sector.Describe the processes by which a number of banks becoming insolvent (or approaching insolvency)can have an adverse impact on the real sector.

---

Definitions:

Proximate Cause

A principle in law that denotes the primary cause of an injury, used to establish the direct link between an act and the injury suffered.

Standard of Care

The degree of prudence, attention, and caution expected of a reasonable person in a specific situation, often used as a legal benchmark.

Foreseeable Damage

Refers to harm or loss that a reasonable person could anticipate under certain conditions in legal or contractual contexts.

Duty Not to Injure

The legal obligation to avoid causing harm to others, especially in terms of personal injury or property damage.