Which of the following activities constitute real sector in the economy?
- 1. Farmers harvesting their crops
- 2. Textile mills converting raw cotton into fabrics
- 3. A commercial bank lending money to a trading company
- 4. A corporate body issuing Rupee Denominated Bonds overseas
Select the correct answer using the code given below:
[amp_mcq option1=”1 and 2 only” option2=”2, 3 and 4 only” option3=”1, 3 and 4 only” option4=”1, 2, 3 and 4″ correct=”option1″]
This question was previously asked in
UPSC IAS – 2022
2. Textile mills converting raw cotton into fabrics: This is a manufacturing process involving the transformation of raw materials into finished goods. It is part of the real sector.
3. A commercial bank lending money: This is a financial intermediation activity, facilitating the flow of funds. It belongs to the financial sector.
4. A corporate body issuing Rupee Denominated Bonds overseas: This is a fundraising activity involving the creation and issuance of financial instruments. It belongs to the financial sector.
Therefore, only activities 1 and 2 constitute the real sector among the options provided.