Correct option is A
The correct answer is (a) Only (i) and (ii)
Explanation:
· The real sector of an economy refers to the part of the economy involved in the production and consumption of tangible goods and services.
· Activities like agriculture, manufacturing, construction, transportation, and most services (like healthcare and education) that directly produce value fall under the real sector.
· (i) Farmers harvesting their crops: This is a real sector activity as it involves the production of agricultural goods (crops), which are tangible outputs.
· (ii) Textile mills converting raw cotton into fabrics: This is also a real sector activity as it involves the manufacturing process of transforming raw materials (cotton) into finished goods (fabrics), creating tangible products.
Information Booster:
· The real sector is crucial for economic growth and is represented by economic segments that contribute to the GDP.
· It utilizes resources like natural resources, labor, and capital to meet human wants and needs.
· The real sector activities lead to the creation of physical commodities and services.
Additional Knowledge: (iii) A commercial bank lending money to a trading company:
· This is a financial sector activity.
· It involves the provision of financial services (lending money) and is part of the financial system, not the direct production of goods or services.
(iv) A corporate body issuing Rupee Denominated Bonds overseas:
· This is also a financial sector activity.
· Issuing bonds is a method of raising funds through financial instruments in financial markets, which is a financial transaction, not direct production.
· Rupee Denominated Bonds (Masala Bonds) are issued by Indian entities in overseas markets to raise funds in Indian rupees.
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30 Questions
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