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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:

UPSC · 2022 · Economy
Question:
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:

Options

1 and 2 only
2, 3 and 4 only
1, 3 and 4 only
1, 2, 3 and 4
Answer: 1 and 2 only

Explanation:
The real sector includes production of goods and services. Financial activities like banking and bond issuance belong to the financial sector.

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