Banking and insurance are activities of which sector?
- A.Primary sector
- B.Secondary sector
- C.Tertiary sector
- D.Unorganised sector
Correct answer
Explanation
The correct answer is C, the tertiary sector. Banking and insurance create no physical product; they support production and trade by providing credit, moving money and covering risk, and such support activities are the core of the tertiary or service sector.
Option A, the primary sector, covers activities that draw on nature directly, and option B, the secondary sector, covers the transformation of those products into manufactured goods. Option D, the unorganised sector, belongs to the other classification altogether, the one based on the conditions of employment; a bank is in fact a typical organised sector employer, with fixed hours, provident fund and job security. Note that a single word can decide the sector: growing sugarcane is primary, making sugar from it is secondary, and selling or financing that sugar is tertiary.
Read the full article: Sectors of the Indian Economy: Primary to Tertiary
Practice Questions
View allMining is classified under which sector of the economy?
- A.Primary sector
- B.Secondary sector
- C.Tertiary sector
- D.Quaternary sector
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Mining takes a product straight out of nature without changing its form, exactly as farming, fishing and forestry do, and every activity of that kind is placed in the primary sector.
Read the full explanation →Which sector of the economy is also known as the service sector?
- A.Primary sector
- B.Secondary sector
- C.Tertiary sector
- D.Public sector
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It produces no goods at all; it provides services such as transport, storage, communication, trade, banking, insurance, education, health care and administration, which is why it is commonly called the service sector.
Read the full explanation →Disguised unemployment is most commonly found in which sector in India?
- A.Agriculture
- B.Information technology
- C.Banking
- D.Mining
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On a small family holding every member of the household may work on the land even though the work needs far fewer hands; if some of them were withdrawn, total output would not fall.
Read the full explanation →How many days of wage employment in a financial year does MGNREGA guarantee to a rural household?
- A.50 days
- B.100 days
- C.150 days
- D.200 days
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The Mahatma Gandhi National Rural Employment Guarantee Act, passed in 2005, guarantees one hundred days of wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work.
Read the full explanation →Which sector employs the largest share of India's workforce?
- A.Primary sector
- B.Secondary sector
- C.Tertiary sector
- D.Quaternary sector
Show answer
Agriculture and its allied activities still give work to the largest number of Indians, even though the sector's contribution to national income is far smaller than that share of employment would suggest.
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