Preview Questions Relationship Manager | Role Specific Skill

Question 1: Which of the following is a characteristic of an exchange-traded fund (ETF) compared to mutual funds?

Which action should you take?

Choose only one option

ETFs require a minimum investment, while mutual funds do not

ETFs trade on an exchange like stocks, while mutual funds are bought or sold through the fund company

ETFs are priced once at the end of the trading day, while mutual funds are traded throughout the day

ETFs guarantee returns, while mutual funds do not

Question 2: What is your approach to handling service disruptions in a way that minimizes the impact on customer relationships?

Which action should you take?

Choose only one option

Offer a discount without explaining the root cause of the disruption

Ignore the issue and hope the customer doesn't notice

Apologize after the issue is resolved and forget to follow up

Communicate proactively, offer a clear timeline for resolution, and follow up regularly

Question 3: What is the primary risk associated with a concentrated portfolio in a single asset class for a high-net-worth client?

Which action should you take?

Choose only one option

Limited growth potential

Lack of diversification leading to higher potential losses

Increased liquidity risk

Higher volatility in returns

Question 4: In a customer service context, customer loyalty can be improved by:

Which action should you take?

Choose only one option

Consistently delivering high-quality, personalized service and maintaining regular communication

Offering discounts on every service to maintain loyalty

Allowing customers to frequently change their service preferences without guidance

Focusing only on new clients and ignoring existing ones

Question 5: A modern portfolio theory approach suggests that investors should focus on maximizing:

Which action should you take?

Choose only one option

The liquidity of the portfolio assets

The total return from the portfolio

Individual asset performance

The expected return for a given level of risk

Question 6: What is the key difference between an actively managed fund and an index fund?

Which action should you take?

Choose only one option

Actively managed funds attempt to outperform the market, while index funds aim to replicate market returns

Actively managed funds do not allow withdrawals, whereas index funds do

Actively managed funds have lower fees than index funds

Index funds focus on fixed income securities, while active funds focus on equity