Canadian Securities Course (CSC) Level 2 Practice Exam

Which sector is part of the Consumer Staples GIC category?

1. Equipment

2. Beverages

3. Commercial/professional services

4. Life sciences

The correct answer is: Beverages

The correct answer is Beverages. The Consumer Staples sector includes companies that produce essential products that consumers purchase regularly, regardless of their financial situation. Beverages are a key component of consumer staples because they encompass items that people frequently buy, such as water, soft drinks, and alcoholic beverages. This category is focused on necessities that tend to have consistent demand, making it a staple in households. The other options fall outside of the Consumer Staples sector. Equipment is typically associated with the industrial sector, which focuses on machinery and tools needed for production. Commercial/professional services pertain to industries providing services rather than physical goods, and life sciences generally relate to sectors involved in health and pharmaceuticals, which do not fit into the essential consumer products that characterize consumer staples.