Canadian Securities Course (CSC) Level 2 Practice Exam

Which sector includes Food, Beverages, and Household/Personal Products?

1. Automobiles

2. Consumer staples

3. Financials

4. Industrial

The correct answer is: Consumer staples

The correct answer is the Consumer staples sector, which encompasses essential goods that consumers tend to purchase regularly. This includes items like food, beverages, and household/personal products. The nature of consumer staples is that they are fundamental to everyday life, ensuring consistent demand even during economic downturns, as people will always need these basic necessities. This stability often leads to this sector being viewed as more resilient in varying economic climates. In contrast, choices like Automobiles pertain to vehicles and related products, Financials involve banks and investment companies, and Industrial includes sectors related to manufacturing and heavy industry. These areas do not focus on the essential day-to-day consumables that characterize the Consumer staples sector.