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 Denom

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Q: 7 (IAS/2022)

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 :

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,222,248,317,51,21,81

keywords: 

{'real sector': [0, 0, 0, 1], 'economy': [1, 3, 8, 35], 'rupee denominated bonds': [0, 0, 0, 1], 'textile mills': [0, 0, 0, 1], 'corporate body': [0, 0, 1, 1], 'commercial bank': [0, 0, 0, 1], 'trading company': [0, 0, 0, 1], 'crops': [6, 1, 6, 7], 'farmers': [1, 3, 8, 26], 'activities': [0, 0, 0, 1], 'raw cotton': [0, 0, 0, 3]}

The real sector of an economy refers to the part of the economy that is involved in the production and consumption of goods and services. It includes activities such as agriculture, mining, manufacturing, and construction, among others.

In the given options, the activities that constitute the real sector are:

  1. Farmers harvesting their crops - This is an agricultural activity, which is part of the real sector as it involves the production of food products.

  2. Textile mills converting raw cotton into fabrics - This is a manufacturing activity, which is also part of the real sector as it involves the production of goods.

  3. A commercial bank lending money to a trading company - This is a financial activity and is not part of the real sector. Banks are part of the financial sector, which is separate from the real sector.

  4. A corporate body issuing Rupee Denominated Bonds overseas - This is also a financial activity and is not part of the real sector. Bond issuance is a financial transaction that does not involve the production or consumption of goods and services.

So, the correct answer is option 1 and 2.


Preparing for Future Exams: Learning from the Analysis of Past Questions

Topics to study:

  • Real sector of the economy
  • Primary, secondary, and tertiary sectors
  • Agriculture and its contribution to the economy
  • Textile industry and its importance in the Indian economy
  • Banking sector and its role in the economy
  • Corporate finance and issuing bonds

Sources:

  • NCERT Class 11 and 12 Economics textbooks
  • Indian Economy by Ramesh Singh
  • Economic Survey of India
  • Reserve Bank of India (RBI) reports and publications
  • Ministry of Finance publications

Related concepts:

  • Gross Domestic Product (GDP)
  • Economic growth and development
  • Industrialization
  • Employment generation
  • Investment and savings
  • Monetary policy and credit flow
  • Fiscal policy and government spending
  • Balance of payments and international trade

NCERT chapters:

  • Class 11 Economics: Chapter 2 - Indian Economy (1950-1990)
  • Class 11 Economics: Chapter 3 - Liberalisation, Privatisation and Globalisation: An Appraisal
  • Class 12 Economics: Chapter 1 - Introduction to Macro Economics
  • Class 12 Economics: Chapter 2 - National Income Accounting
  • Class 12 Economics: Chapter 6 - Open Economy Macroeconomics

Reference book chapters:

  • Indian Economy by Ramesh Singh: Chapters 2, 3, 6, 7, 8, 9

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