Finra Exam SIE Topic 1 Question 12 Discussion

Actual exam question for Finra's SIE exam

Question #: 12
Topic #: 1

[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 Charisse at Jul 06, 2025, 05:15 AM

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Antione

2 days ago

I think rising economic activity would benefit Consumer discretionary.

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