Skip to main content

Financial Sector vs Real sector Upsc pre 2022









Financial sector

Real Sector

deals with providing

finance through debt

and equity,

production of goods

& services.

 

Let's Understand the concept using the 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

 

Solution

A

 

Tip


What is Finance?

Management of large amount of money by Govt./firms

 

 

 

Comments

Popular posts from this blog

Non-Fungible Tokens (NFTs) UPSC pre 2022

It Was a medium-level question because though NFTs were in the news but question require the application of basics. Concerning  Non-Fungible Tokens (NFTs) , consider the following statements : 1.   They enable the digital representation of physical assets. 2.  They are unique cryptographic tokens that exist on a blockchain. 3.  They can be traded or exchanged at equivalency and therefore can be used as a medium of commercial transactions. Which of the statements given above is correct? (a)        1 and 2 only (b)        2 and 3 only (c)        1 and 3 only        ' (d)        1, 2 and 3   Solution- For a Better understanding see the video.   Trick Statement 3 is wrong Because Non-fungible items cannot be used as a medium of exchange because they will not be divisible easily.     What is a Non-Fungible Token[NFTs]?   NFTs are  unique c...

Rapid Financing Instrument and Rapid Credit Facility UPSC pre 2022

This question was purely based on current affairs.   Recently Rapid Financing Instruments and Rapid Credit Facility were in news, due to Sri Lankan economic crisis.   It was a medium-level question because it covered almost in all the sources of the current affair but not in many standard sources.   “ Rapid Financing Instrument ” and “ Rapid Credit Facility ” are related to the provisions of lending by which one of the following ? (a) Asian Development Bank (b) International Monetary Fund (c) United Nations Environment Programme Finance Initiative (d) World Bank   Solution-A   What is Rapid Financing Instrument (RFI)?   It provides rapid financial assistance , which is available to all member countries facing an urgent balance of payments need.   It is flexible financial support and it can address the diverse needs of member countries.   The RFI replaced the IMF’s previous emergency assistance policy and...

What is Household financial savings and Public Debt UPSC pre 2022

This question was directly taken from Economic survey.   It can be categorized as a medium-level question because the economic survey is an important source for the Economy related questions but still remembering all the detail of the economic survey is difficult.     Concept Discussed   Household financial savings   Public debt.   Dated securities and   In the end, I would discuss a rare question of UPSC.     Statement 1- A share of the household's financial savings goes towards government borrowings.     What is Household financial savings?   It refers to currency, bank deposits, debt securities,   mutual   funds,   pension funds,   insurance, and investments in small savings schemes by households.     As the government borrows through the issue of government securities called G-secs and Treasury Bills.   Banks, insurance companies, and mutual funds ...