Preview Questions Relationship Manager | Role Specific Skill

Question 1: What is the primary challenge when managing multi-generational wealth in client portfolios?

Which action should you take?

Choose only one option

Maintaining a fixed asset allocation for the entire family

Ensuring tax efficiency across all generations

Aligning the financial goals and preferences of different generations within the same family

Managing only the financial aspect and ignoring family dynamics

Question 2: What is the key feature of a corporate bond that makes it attractive for a risk-averse client looking for steady income in BFSI investments?

Which action should you take?

Choose only one option

Tax-free interest income

Equity upside potential

Higher returns compared to government bonds

Fixed interest payments and a known maturity date

Question 3: When explaining the benefits of a 401(k) retirement account to a client, which of the following tax advantages should be emphasized?

Which action should you take?

Choose only one option

Contributions are tax-exempt, and there are no taxes on growth

Contributions are tax-deferred, and the account grows without being taxed until withdrawal

Withdrawals are tax-free as long as the funds are used for healthcare expenses

The client can withdraw at any time without penalty or tax consequences

Question 4: How does the duration of a bond affect its interest rate sensitivity?

Which action should you take?

Choose only one option

The longer the duration, the less sensitive the bond is to interest rate changes

Bonds with shorter durations are more sensitive to rate changes

The longer the duration, the more sensitive the bond is to interest rate changes

Duration does not affect the bond's interest rate sensitivity

Question 5: How do you handle a difficult client who is consistently unhappy with the services provided?

Which action should you take?

Choose only one option

Ignore their concerns and continue with the standard service

Avoid engaging with them to reduce conflict

Listen actively, empathize with their concerns, and find a solution tailored to their needs

Transfer them to another manager immediately

Question 6: When negotiating the terms of a long-term client contract, how do you ensure both parties feel confident in the agreement?

Which action should you take?

Choose only one option

Present a well-structured proposal with clear terms and potential for future growth

Focus primarily on the company's needs without considering client goals

Avoid discussing the terms in detail to prevent misunderstandings

Focus on offering the lowest possible rate to secure the deal