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 

(a) 1 and 2 only 

(b) 2, 3, and 4 only 

(c) 1, 3 and 4 only 

(d) 1, 2, 3, 4 

Ans: a

Explanation:

Every economy as having four broad economic sectors

1. The real sector:  The real sector comprises production and expenditure in the economy. Its accounts measure the total activity in the economy, described either from the standpoint of production, expenditure, or income. 

2. The external sector: The external sector covers the relations between the economy and the rest of the world. The economic aspects of these relations are recorded in a set of accounts called the balance of payments.

3. The fiscal sector: The fiscal sector involves the activities of government and government-owned non-financial entities called public or stateowned enterprises. Fiscal data include information on government and state enterprise debt and debt service.

 4. The monetary sector: The monetary sector comprises the activities of the economy’s financial institutions, including its central bank or monetary authority, the commercial (deposit money) banks, and other financial institutions, such as investment banks, finance companies, credit unions, and any microfinance entities. 

• Farmers harvesting their crops – The Real sector
• Textile mills converting raw cotton into fabrics – The Real sector
• A commercial bank lending money to a trading company  – The monetary sector.
• A corporate body issuing Rupee Denominated Bonds overseas – The external sector.

Hence statement 1, 2 are correct and 3, 4 are incorrect.

Read: Solved Economy PYQs With Explanation 2022 UPSC Prelims