UPSC PRELIMS · ECONOMICS · REAL SECTOR VERSUS FINANCIAL SECTOR

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:

Take a breath. Choose one. Press A–D on your keyboard if you like.

EXPLANATION

Agricultural and manufacturing production belong to the real sector; bank lending and bond issuance are financial-sector activities.

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