Evercore Sales & Trading Interview Practice Test 2025 – Your All-in-One Preparation Guide for Success!

Defensive sectors are characterized by their ability to maintain demand for their products and services during economic downturns. This resilience stems from the nature of the goods and services they provide, which typically include essential items like food, utilities, and healthcare. These sectors tend to offer stability and consistent revenue streams regardless of the overall economic conditions, making them appealing during times of recession when consumer spending on non-essential goods often declines.

In contrast, options that relate to correlation with cyclical growth, reliance on high-risk investments, or rapid growth rates do not accurately capture the primary characteristic of defensive sectors. Such attributes are more aligned with cyclical or growth-oriented sectors, which do not provide the same level of demand stability during economic fluctuations. Thus, the emphasis on recession-proof demand aptly defines why the selection regarding defensive sectors is the most accurate choice.