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. The real sector of the economy refers to the part that deals with the production and flow of actual goods and services, as opposed to the financial or monetary sector which deals with financial assets. 2. Activity 1: Farmers harvesting their crops involves the production of agricultural goods. This is a core activity of the real sector. 3. Activity 2: Textile mills converting raw cotton into fabrics involves the manufacturing of goods. This is also a core activity of the real sector. 4. Activity 3: A commercial bank lending money is a financial transaction. It facilitates economic activity but is part of the financial sector, not the real sector itself. 5. Activity 4: A corporate body issuing Rupee Denominated Bonds overseas (like Masala Bonds) is a financial activity related to raising capital. This belongs to the financial sector. 6. Therefore, only activities 1 and 2 constitute the real sector.