Check: Module 3 Self-assessment
Reports
Overall Results
Score: Number
Attempt Questions Correct Your Score
92%
1 24 22 92%
You have passed the test.
Section Results
Score: Number
Section Questions Correct Your Score
92% Section 1 – Creating Value
for Your Client 6 6 100%
Section 2 – Selling With a
Needs-Based Approach 9 7 78%
Section 3 – Selling
Additional Solutions to
Meet Your Clients'
Financial Goals 4 4 100%
Section 4 – Building Your
Business Through
Referrals 5 5 100%
Question Results
1. What three attributes characterize most financial products?
A. Intangibility, permanence and diversity
B. Tangibility, impermanence and complexity
Good choice! C. Intangibility, complexity and divergence
D. Diversity, tangibility and convergence
Feedback: Clients often have difficulty making decisions because of the intangibility, complexity and divergence of many financial products.
Reference | Section 1 – Creating Value for Your Client
2. What is the primary characteristic of an intangible good?
A. Its creation requires a number of steps.
B. It provides satisfaction through customer use.
Good choice! C. It lacks physical substance.
D. It is difficult to sell to clients.
Feedback: The lack of physical substance makes financial products difficult for clients to evaluate.
Reference | Section 1 – Creating Value for Your Client
3. What are the greatest challenges clients face when purchasing financial products?
A. Weighing the cost of products against the benefits and determining whether or not the price is fair
B. Choosing the right financial institution and finding products that fits their needs
C. Finding products that support each other and choosing the right provider
Good choice! D. Finding information, understanding the services and assessing the risk
Feedback: Because financial products are challenging to evaluate, clients often have difficulty making decisions. Creating value can help the
client overcome the challenges of finding information, understanding the services and assessing the risk.
Reference | Section 1 – Creating Value for Your Client
4. Which of the following statements about value creation is false?
A. Value creation helps to develop loyalty and client satisfaction.
B. When we create value, our clients will be more likely to view fees for service as necessary costs
incurred for a larger benefit.
C. Value creation helps to build client relationships that provide opportunities for selling financial
products in the future.
Good choice! D. Creating value brings benefits to the client but not to the adviser.
Feedback: When you work to find the right products and services to meet each client's needs and goals, both you and your client benefit.
Reference | Section 1 – Creating Value for Your Client
5. Which of the following statements best describes the value-creation approach to selling?
A. We create value for our clients by selling them a variety of products, not just a single product.
Good choice! B. We create value for our clients by considering their specific needs and goals.
C. Value creation is a process of promoting, selling and cross-selling to our clients as many products as
possible.
D. Value creation refers to facilitating transactions and providing products and services that the client
requests.
Feedback: We create value for our clients by consulting with them to discover their specific needs and goals and then finding the solutions
that work for them.
Reference | Section 1 – Creating Value for Your Client
6. Which of the following statements demonstrates a benefit, and not a feature, of the ABC Financial platinum credit card?
A. The credit card provides automatic extended warranty for two years on purchases made with the
card.
B. The credit card provides 90-day purchase protection against theft and damage.
Good choice! C. Cardholders do not need to purchase extra health insurance when travelling outside the country.
D. The credit card earns one travel reward point for every retail dollar spent.
Feedback: A feature is a characteristic or technical aspect of a product. A benefit is an advantage that a feature brings to the client.
Remember to focus on the benefits of a product, not its features.
Reference | Section 1 – Creating Value for Your Client
7. Which of the following is an example of a need and not a goal?
Good choice! A. Living within a budget
B. Retiring early
C. Sending children to university
D. Travelling to Europe
Feedback: Needs are short-term financial necessities that must be in place to accomplish longer-term objectives, or goals.
Reference | Section 2 – Selling With a Needs-Based Approach
8. Which of the following is not a factor that helps to determine your client's needs and goals?
A. Financial needs of children and parents
B. Anticipated spending levels and obligations
C. Desired retirement income
Good choice! D. Current interest rates
Feedback: You can determine your clients' needs and goals by asking questions and listening to their responses. You must consider both
the client's current lifestyle and any expected changes that may affect financial decisions.
Reference | Section 2 – Selling With a Needs-Based Approach
9. Which of the following are categories that must be considered when determining your clients' goals?
A. Balancing, consuming and decreasing
B. Attaining, consuming and dispersing
Good choice! C. Balancing, maintaining and increasing
D. Attaining, maintaining and dispersing
Feedback: Depending on your clients' financial capacity and their lifestyle ambitions or restrictions, their goals can be grouped into three
categories: balancing, maintaining and increasing.
Reference | Section 2 – Selling With a Needs-Based Approach
[Link] of the following statements is a good example of the balancing category of goal determination?
A. A couple puts enough money aside from their income to take an annual holiday with their children.
B. A couple pays off their mortgage, freeing up income for other purchases or investments.
Good choice! C. A two-income couple must reduce expenses when the husband is laid off from his job.
D. A retiring couple sells their home in the city and moves to a smaller community where real estate
prices are lower.
Feedback: When clients are in the balancing category of goal determination, they do not have the financial resources to fund their present
lifestyle.
Reference | Section 2 – Selling With a Needs-Based Approach
11. Which of the following statements best describes the two-fold test for identifying solutions to fit your client's needs?
A. The solution must be low risk and it must fit the client's profile.
B. The solution must fit the client's specific financial needs and goals and it must be easy to
understand.
Good choice! C. The solution must fit the client's specific financial needs and goals and it must fit the client's profile.
D. The solution must be low risk and it must be easy to understand.
Feedback: By assessing your client's needs and goals and by applying your technical expertise of the products and services available, you
can suggest or recommend an appropriate solution that meets the requirements of the two-fold test.
Reference | Section 2 – Selling With a Needs-Based Approach
[Link] explains to Helena in great detail how an RRSP works, but Helena still seems confused and uncertain. How might Sarah make it
easier for Helena to understand?
A. Focus on the benefits of an RRSP, not on its features.
B. Repeat her explanation in a slightly raised voice.
The correct answer is: C. Give Helena an opportunity to ask questions and offer a brochure that explains RRSPs in writing.
You chose: D. Give Helena a more detailed explanation.
Feedback: Remember that different clients have different learning styles. Your role is to ensure your client understands the details and
evaluates the solution on its merits and not on a misunderstanding.
Reference | Section 2 – Selling With a Needs-Based Approach
[Link]'s client, Dawn, objects to a credit card with travel rewards because it carries an annual fee. Sarah acknowledges the fee but points
out that the money Dawn will save on travel will easily outweigh the cost. What technique is Sarah using to rectify Dawn's objection?
A. The HAIR technique
You chose: B. The boomerang technique
C. The forestalling technique
The correct answer is: D. The compensation technique
Feedback: Sarah uses the compensation technique by acknowledging and agreeing with the objection but pointing out the advantages that
outweigh the objection.
As an adviser, you need to acknowledge objections and to be familiar with techniques to address them immediately.
Reference | Section 2 – Selling With a Needs-Based Approach
[Link] are the components of the HAIR technique for handling objections?
A. Hear, Assess, Integrate, Reassess
Good choice! B. Hear, Acknowledge, Identify, Rectify
C. Handle, Address, Instruct, Reinforce
D. Handle, Assess, Interpret, Recommend
Feedback: When you use the HAIR technique, you hear your client's objection, acknowledge its validity, identify the problem and rectify the
situation. Using this technique shows that you are listening to your client and that you respect your client's point of view, which increases
both your credibility and your client's trust.
Reference | Section 2 – Selling With a Needs-Based Approach
[Link] closing the sale, which of the following is not a method to gain client commitment?
Good choice! A. Give your client the opportunity to think about it and get back to you.
B. Help your client set challenging goals.
C. Evoke your client's desire.
D. Present your client with a choice.
Feedback: To gain commitment, respond enthusiastically and empathetically to your clients' goals, help them to challenge themselves to
meet ambitious goals, and make them aware of the importance of making a decision.
Reference | Section 2 – Selling With a Needs-Based Approach
[Link] of the following is a correct statement about life stages?
Good choice! A. During their pre-retirement years, clients are usually fully established in their careers and have often
paid off their mortgages.
B. During their prime years, clients usually wish to acquire their first credit card.
C. In the starting out stage, buying a cottage is often one of a client's first priorities.
D. Clients in the post-retirement phase are commonly supporting children in post-secondary education.
Feedback: When you work with your clients to determine their financial priorities, keep in mind that most people progress though
recognizable life stages characterized by specific needs and goals.
Reference | Section 3 – Selling Additional Solutions to Meet Your Clients' Financial Goals
[Link] of the following is a correct statement about bundling products?
A. A thorough analysis of your clients' needs and goals will rarely help you to identify more than one
product or service that will provide a benefit.
B. When you are selling bundled products, it is not necessary to determine your clients' needs and
goals.
C. After you have sold a client one product, you can take advantage of the trust you have gained to sell
additional products and services that may be less relevant to your client's needs.
Good choice! D. The added service you offer must be relevant to your clients' needs and it must bring them an
advantage.
Feedback: When you are selling additional products, you risk losing your clients' trust if you try to try to bundle products or services that
either have no advantage to your clients or will cost them money with no return.
Reference | Section 3 – Selling Additional Solutions to Meet Your Clients' Financial Goals
[Link] client statement below may reveal a hidden need?
Good choice! A. I'd like have an RRSP, but I also like to travel and I don't want to give that up.
B. My goal is to retire by the time I'm 55.
C. I would like to save for my retirement.
D. I'm not ready to make a decision about my RRSP.
Feedback: By engaging your client in friendly conversation, you can sometimes uncover needs and goals that your client has not expressed
openly. This client, for example, may benefit from both a credit card with travel rewards and an RRSP.
Reference | Section 3 – Selling Additional Solutions to Meet Your Clients' Financial Goals
[Link] of the following is not a necessary characteristic of a bundled product that you offer to a client?
A. It must bring an advantage to the client.
B. It must be offered as a choice and not a condition.
Good choice! C. It must be offered at a discounted rate.
D. It must be relevant to the client's needs.
Feedback: Your clients should feel that any additional products you offer are optional but relevant and advantageous to their situation, even
if you're not offering a special discount.
Reference | Section 3 – Selling Additional Solutions to Meet Your Clients' Financial Goals
[Link] is the best way to handle objections to cost?
A. Delay addressing objections to cost for as long as possible.
B. Most objections to cost can be ignored because the client usually isn't serious.
C. Convince your client you can provide the lowest cost compared with any other service provider.
Good choice! D. Emphasize the value of the services compared with the fees paid.
Feedback: Objections to cost are the most common and the most difficult objections to handle because the cause of the problem is often not
in your control. In most cases, you can overcome objections to cost by emphasizing the value of the services compared with their cost.
Reference | Section 4 – Building Your Business Through Referrals
[Link] of the following is a correct statement about obtaining referrals from your clients?
A. Never ask clients directly whether they are happy with your services.
Good choice! B. Ask for referrals only when you are satisfied that your clients are happy with your services.
C. Never ask clients directly for a referral.
D. Obtaining new referrals should be your focus of each client meeting.
Feedback: The key to obtaining referrals from your clients is to focus first on discovering their needs and goals and then to provide solutions
that work. If you have provided value and satisfaction, your clients will be happy to refer you to others who can benefit from your service.
Reference | Section 4 – Building Your Business Through Referrals
[Link]'s client, Reiko, runs a small business as sole proprietor. Reiko would like to set up her business as a partnership with her husband.
Sarah is inexperienced in this area of financial services. What should she do?
A. Tell Reiko that she is unable to help her.
B. Reschedule the appointment to make time to gather information.
Good choice! C. Refer Reiko to an experienced business colleague.
D. Figure it out as she goes along.
Feedback: When you do not have the expertise or resources to provide what your client needs, your job is to identify those needs and to
refer your clients to a business colleague or specialist who can provide the product or service required.
Reference | Section 4 – Building Your Business Through Referrals
[Link] is a benefit statement?
A. A benefit statement is a statement of a client's investment earnings.
B. A benefit statement is a declaration of the terms and conditions of insurance coverage.
C. A benefit statement is a summary of the benefits of a product or service.
Good choice! D. A benefit statement is a written summary of your business partner's expertise and credentials.
Feedback: When you refer a client to a business partner, provide your client with your business partner's benefit statement. Focus on the
benefits of the referral to reassure your client that you are not handing off a problem.
Reference | Section 4 – Building Your Business Through Referrals
[Link] of the following is a correct statement about business referrals?
A. Business referrals only benefit those who are already well established in the financial services
industry.
B. When you refer a client to a business partner, the client has the responsibility to arrange the
meeting.
C. Once you have referred a client to a business partner, that client is no longer your concern and you
are not required to follow up.
Good choice! D. Business referrals are reciprocal; the more referrals you give, the more you will receive in return.
Feedback: When you refer clients to business partners, you engage in teamwork that strengthens the relationships within your internal team.
A strong and united team creates benefits not only to your institution but to you as an adviser.
Reference | Section 4 – Building Your Business Through Referrals