Identifying activities that constitute the real sector of the economy
Question
Which of the following activities constitute real sector in the economy? Select the correct answer using the code given below
- 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
Options
1 and 2 only
2, 3 and 4 only
1, 3 and 4 only
1, 2, 3 and 4
Explanation
Activities 1 and 2 are correct; the "real sector" refers exclusively to the segment of the economy engaged in the actual production and distribution of tangible goods and non-financial services (agriculture, manufacturing). Activities 3 and 4 (banking loans and bond issuance) belong strictly to the financial sector.
Answer: (a).
Question details
Year
2022
Paper
GS Paper 1
Question
Q7
Subject
Economy
Sub-topic
Macroeconomics & Growth
Type
Statement-based
Difficulty
Medium
Nature
Static
Source hint
NCERT Economy Cl.12 Ch.1 / Real vs Financial Sector
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