Read the following passage and answer the question.

A recent cut in the interest on loans announced by the SBIM Bank encouraged Anaya, a science student of Imperial School to take a loan from SBIM Bank to experiment and develop cars to be powered by fuel produced from garbage. She developed such a car and exhibited it at science fair organised by DOE. She was awarded Ist prize for his invention.

Which of the following environment is highlighted in the given statement?

'A recent cut in the interest on loans announced by the SBIM Bank encouraged Anaya'.

Economic environment

The correct answer is option 2- Economic environment.

Economic environment is highlighted in the given statement- 'A recent cut in the interest on loans announced by the SBIM Bank.'

The economic environment in India consists of various macro-level factors related to the means of production and distribution of wealth which have an impact on business and industry. Some Components of Economic Environment are as follows-

* Existing structure of the economy in terms of the relative role of private and public sectors.
* The rates of growth of GNP and per capita income at current and constant prices.
* Rates of saving and investment
* Volume of imports and exports of different items.
* Balance of payments and changes in foreign exchange reserves.
* Agricultural and industrial production trends.
* Expansion of transportation and communication facilities.
* Money supply in the economy.
* Public debt (internal and external).
* Planned outlay in private and public sector.