Finra SIE Exam - Topic 5 Question 14 Discussion

Actual exam question for Finra's SIE exam

Question #: 14
Topic #: 5

[All SIE Questions]

Rising economic activity is most likely to increase revenues of which of the following sectors?

AUtilities

BHealthcare

CConsumer staples

DConsumer discretionary

Show Suggested Answer

Suggested Answer: D

Step by Step Explanation:

Consumer Discretionary Sector: Includes products and services that are not essential, such as luxury items, travel, and entertainment. Revenues increase as disposable income rises during economic expansion.

Consumer Staples and Utilities: These sectors are defensive and less impacted by economic cycles.

Healthcare: Also less correlated with economic cycles due to its essential nature.

SEC and FINRA Guidance on Sectors: Investopedia Sector Overview.

by Theola at Aug 02, 2025, 03:51 AM

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Lonna

2 months ago

Definitely consumer discretionary! People spend more when they feel good about the economy.

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Honey

2 months ago

Really? I’m not so sure about that. Utilities seem more stable.

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Elly

2 months ago

I think healthcare will see a boost too, especially with aging populations.

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Alpha

2 months ago

Consumer discretionary is usually the winner in a booming economy!

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Timothy

3 months ago

Surprised that utilities are even in the mix here. They’re pretty steady regardless of the economy.

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Charlene

3 months ago

I think healthcare is pretty essential, so I'm not sure if it would see a significant increase in revenue just from rising economic activity.

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Sharika

3 months ago

I practiced a similar question where consumer staples were mentioned, but I feel like they don't really get a boost from economic growth like consumer discretionary does.

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Ligia

4 months ago

I'm not entirely sure, but I think utilities might be more stable regardless of economic conditions.

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Erick

4 months ago

I remember discussing how consumer discretionary tends to benefit from rising economic activity since people have more disposable income.

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Noemi

4 months ago

This is a tricky one. I'm leaning towards consumer discretionary, since that sector is often more sensitive to changes in the economy, but I'm not 100% sure.

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Buffy

4 months ago

Utilities and consumer staples seem like the most obvious choices, but I'm not totally confident. I'll have to weigh the pros and cons of each option.

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Rebecka

4 months ago

I've got a good feeling about this one. Utilities, healthcare, and consumer staples all seem like they could benefit from rising economic activity.

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Farrah

4 months ago

Hmm, not sure about this one. I'll have to think it through step-by-step to figure out the right answer.

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Mirta

5 months ago

This seems like a straightforward question about how different sectors are impacted by economic activity. I'll think through the options carefully.

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Ilda

5 months ago

Hmm, I'm not so sure. I'm leaning towards C. Consumer staples. Even in good times, people still need to buy basic necessities like food and toiletries.

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Darci

1 month ago

I still think C is solid. Basic needs won't change, even if people splurge a bit.

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Beata

2 months ago

I agree with Lorenza. Consumer discretionary often sees a boost during economic upturns.

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Kimberlie

2 months ago

True, but A could also benefit. Utilities are essential, and demand stays steady.

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Lorenza

3 months ago

I see your point, but I think D might be stronger. People spend more on non-essentials when the economy is good.

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Tawna

5 months ago

I think rising economic activity would benefit Consumer discretionary.

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Aleshia

7 months ago

Option B, Healthcare, seems like a good choice. People tend to spend more on healthcare during economic booms.

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Elvera

7 months ago

I think the answer is D. Consumer discretionary. Rising economic activity usually boosts consumer spending on non-essential goods and services.

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Nenita

5 months ago

Utilities may not see as much of an increase in revenues compared to consumer discretionary or healthcare.

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Sharee

5 months ago

I think healthcare might also see a boost in revenues with rising economic activity.

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Shelton

6 months ago

I agree, consumer discretionary is likely to benefit from increased economic activity.

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