IFIC (Unit 11 Quiz) UPDATED ACTUAL
Exam Questions and CORRECT Answers
Three elements of face-to-face communication:
1. Words
2. Tone of voice
3. Non-verbal communication - CORRECT ANSWER - Three elements of
_______________ communication:
1. Words
2. Tone of voice
3. Non-verbal communication
Three elements of communication:
- Hearing
- Understanding
- Interpreting - CORRECT ANSWER - Three elements of ______________________:
- Hearing
- Understanding
- Interpreting
Implied needs: problems that a client expresses but is not ready to address.
- A problem can only be addressed if a client explicitly indicates that they want to fix it. -
CORRECT ANSWER - ____________ needs: problems that a client expresses but is not
ready to address.
- A problem can only be addressed if a client explicitly indicates that they want to fix it.
It is the dealing representative's role to help the client understand that not acting to address
problems may result in larger problems
, - This can be avoided by offering solutions - CORRECT ANSWER - It is the dealing
representative's role to help the client understand that not acting to address problems may result
in larger problems
- This can be avoided by offering _________
Three stage process to determine trade suitability for a client:
1. Know your client (KYC)
- Gather necessary info to make sure an investment is right for your client
2. Know your product (KYP)
- MF dealer must do research on a product before they are offered to clients
- Dealing reps must also do their own research before offering a product to a client
3. Assess suitability
- Matching investment with investor needs (matching NYP with KYC) - CORRECT
ANSWER - Three stage process to determine trade _____________ for a client:
1. Know your client (KYC)
- Gather necessary info to make sure an investment is right for your client
2. Know your product (KYP)
- MF dealer must do research on a product before they are offered to clients
- Dealing reps must also do their own research before offering a product to a client
3. Assess suitability
- Matching investment with investor needs (matching NYP with KYC)
Behavioral Finance
The study of the errors in the financial decision-making process to which we are all susceptible. -
CORRECT ANSWER - ___________________ Finance
The study of the errors in the financial decision-making process to which we are all susceptible.
The deposition effect: The tendency for investors to sell winners too early and ride losers too
long - CORRECT ANSWER - The deposition effect: The tendency for investors to sell
winners too ____________ and ride losers too ____________
Exam Questions and CORRECT Answers
Three elements of face-to-face communication:
1. Words
2. Tone of voice
3. Non-verbal communication - CORRECT ANSWER - Three elements of
_______________ communication:
1. Words
2. Tone of voice
3. Non-verbal communication
Three elements of communication:
- Hearing
- Understanding
- Interpreting - CORRECT ANSWER - Three elements of ______________________:
- Hearing
- Understanding
- Interpreting
Implied needs: problems that a client expresses but is not ready to address.
- A problem can only be addressed if a client explicitly indicates that they want to fix it. -
CORRECT ANSWER - ____________ needs: problems that a client expresses but is not
ready to address.
- A problem can only be addressed if a client explicitly indicates that they want to fix it.
It is the dealing representative's role to help the client understand that not acting to address
problems may result in larger problems
, - This can be avoided by offering solutions - CORRECT ANSWER - It is the dealing
representative's role to help the client understand that not acting to address problems may result
in larger problems
- This can be avoided by offering _________
Three stage process to determine trade suitability for a client:
1. Know your client (KYC)
- Gather necessary info to make sure an investment is right for your client
2. Know your product (KYP)
- MF dealer must do research on a product before they are offered to clients
- Dealing reps must also do their own research before offering a product to a client
3. Assess suitability
- Matching investment with investor needs (matching NYP with KYC) - CORRECT
ANSWER - Three stage process to determine trade _____________ for a client:
1. Know your client (KYC)
- Gather necessary info to make sure an investment is right for your client
2. Know your product (KYP)
- MF dealer must do research on a product before they are offered to clients
- Dealing reps must also do their own research before offering a product to a client
3. Assess suitability
- Matching investment with investor needs (matching NYP with KYC)
Behavioral Finance
The study of the errors in the financial decision-making process to which we are all susceptible. -
CORRECT ANSWER - ___________________ Finance
The study of the errors in the financial decision-making process to which we are all susceptible.
The deposition effect: The tendency for investors to sell winners too early and ride losers too
long - CORRECT ANSWER - The deposition effect: The tendency for investors to sell
winners too ____________ and ride losers too ____________
