UPSC PYQPrelims 2022

Civil Services Examination · Question 7

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:

  1. 1 and 2 only
  2. 2, 3 and 4 only
  3. 1, 3 and 4 only
  4. 1, 2, 3 and 4
Show answer & explanation

Answer: (A) 1 and 2 only

Explanation

The real sector produces goods and services (agriculture, manufacturing). Bank lending and bond issuance are financial-sector activities.