Which one of the following activities is correctly classified as part of the service sector (tertiary sector) of the economy, rather than agriculture or manufacturing?

Introduction / Context:
Economic activities are commonly grouped into three broad sectors: primary, secondary, and tertiary. Many examination questions test whether you can correctly place a given activity into the right sector. This question asks you to identify which activity belongs to the service sector, also called the tertiary sector, which has become increasingly important in modern economies including India.

Given Data / Assumptions:

• Four activities are listed: textile mills, banking, coal mines, and agriculture.
• We need to identify which one is part of the service sector.
• We assume standard textbook classifications of sectors.

Concept / Approach:
The primary sector includes activities that involve extraction and production of natural resources such as farming, fishing, mining, and forestry. The secondary sector covers manufacturing and industrial processing activities, where raw materials are converted into finished or semi finished goods. The tertiary sector consists of services such as trade, banking, insurance, transport, communication, tourism, health care, and education. Banking is a classic example of a service providing financial intermediation between savers and borrowers.

Step-by-Step Solution:
Step 1: Classify textile mills. They convert raw textiles like cotton or fibre into cloth, which is a manufacturing process in the secondary sector.Step 2: Classify coal mines. They extract coal from the earth, which is an extraction activity in the primary sector.Step 3: Classify agriculture. It involves production of crops and food, which is also in the primary sector.Step 4: Classify banking. It provides financial services such as accepting deposits, giving loans, and offering payment facilities, which are tertiary sector services.Step 5: Therefore, banking is the only activity listed that clearly belongs to the service sector.

Verification / Alternative check:
Any standard economics textbook will give examples of service sector activities, and banking appears regularly in that list along with insurance and trade. This makes banking the obvious choice for the service sector in contrast with the other more production oriented activities.

Why Other Options Are Wrong:
Textile mills: These involve manufacturing cloth from raw fibre and are part of the industrial or secondary sector, not a service sector activity.
Coal mines: Mining is a resource extraction activity and forms part of the primary sector of the economy.
Agriculture: Farming and cultivation of crops are classic primary sector activities and do not come under services.

Common Pitfalls:
Some learners misclassify industries by focusing on where offices are located rather than the nature of the activity itself. To avoid such confusion, always ask whether the output is a tangible good produced from raw materials (primary or secondary) or a service like finance, education, or transport. In this case, banking clearly provides a service rather than producing a physical good.

Final Answer:
Banking is part of the service (tertiary) sector.