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 :
(a) 1 and 2 only
(b) 2, 3 and 4 only
(c) 1, 3 and 4 only
(d) 1, 2, 3 and 4
Answer:
A
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Explanation:
The question seems to be asking about the contrast between the financial sector and the real sector. Financial sector deals with providing finance through debt and equity, whereas real sector deals with production of goods and services. So #1 and #2 alone fit the pattern. So, answer is “A”.