Module 2 (Effective Communication)

Question 1

What are the four ways an advisor must promote trust?

Answer 1

1. structuring communication
2. alleviating concerns
3. responding to social style of the client
4. communicating effectively

Question 2

This is the determination of the subject matter and format of the communication.

Answer 2

structuring

Question 3

What are the three types of structured communication?

Answer 3

interviewing
counseling
advising

Question 4

This usually involves the process of asking questions to gather information.

Answer 4

Interviewing

Question 5

This type of structure communication involves a short meeting, formal setting, no digressions, and uses a question and answer format to gather information.

Answer 5

interviewing

Question 6

With this type of interviewing, the advisor controls the pacing and content discussed. The client usually completes a questionnaire.

Answer 6

directive interview

Question 7

With this type of interviewing the client controls the pacing, it’s more time-consuming, more in depth, and a wide range of topics are usually discuss.

Answer 7

Non-directive interview

Question 8

This involves an offer to help someone.

Answer 8

Counseling

Question 9

This type of communication is less formal and uses discussion, insight, and reflection as a primary method of communication.

Answer 9

Counseling

Question 10

This type of structured communication takes place over a long period of time.

Answer 10

Counseling

Question 11

Does counseling include helping with credit card problems?

Answer 11

Yes

Question 12

This type of structure communication involves giving specific guidance.

Answer 12

Advising

Question 13

When an investment advisor recommends a certain mutual fund to a client what type of structure communication is this?

Answer 13

Advising

Question 14

What will create a dependency of the client on the advisor?

Answer 14

Giving too much advice, too early on in the relationship.

Question 15

What domain of financial planning uses structured communication method advising?

Answer 15

Domain 4

Question 16

Are the 4 barriers that can create tension between an advisor and a client?

Answer 16

Fear of making a decision
Resistance to change
Time constraints
Negative image of salespeople
Fear of fraud

Question 17

What are the four social styles?

Answer 17

Driving
Expressive
Amiable
Analytical

Question 18

How should you handle someone that is forceful, direct, and wants power?

Driving

Answer 18

You should be efficient and provide options.

Question 19

How should you handle someone that is outgoing, enthusiastic, and once recognition?

Expressive

Answer 19

You should take time to listen

Question 20

As an advisor how do you handle someone that is easy-going and supportive?

amiable

Answer 20

You should just cooperate

Question 21

I would an advisor handle someone that is analytical, logical, quiet, and wants respect?

Answer 21

You should be accurate and have an agenda.

Question 22

Clients are more likely to accept an advisor’s recommendations if the advisor demonstrates an interest in…

Answer 22

the client.

Question 23

Effective communication involves much more than just explaining products and services. An advisor must develop…

Answer 23

good listening skills.

Question 24

A client can have resistance towards an advisor that is often expressed…

Answer 24

Overtly or Coverly

Question 25

The advisor should recognize patterns in the behavior of the client and share these observations in a…

Answer 25

Non-judgmental manner

Question 26

What is a particularly sensitive topic for clients?

Answer 26

Death or dying

Question 27

What is the easiest type of resistance one can recognize with a client?

Answer 27

Overt hostility

Question 28

If a client expresses anger openly, what type of hostility resistance is this?

Answer 28

Overt hostility

Question 29

This type of hostility generally the most difficult to recognize which includes cynicism and missed appointments.

Answer 29

Covert hostility

Question 30

What is the best way to deal with the clients anger?

Answer 30

Deal with it directly by focusing on the clients behavior and letting the client interpret it.

Question 31

What are the four attributes of an effective advisor?

Answer 31

Unconditional positive regard
Accurate empathy
Genuineness
Self-awareness

Question 32

Is an attitude of appreciating the client as a worthwhile person.

Answer 32

Unconditional positive regard

Question 33

This is when an adviser’s sense of the client’s world matching the client’s self image which involves listening very carefully.

Answer 33

Accurate empathy

Question 34

This is when an advisor has to be a real person.

Answer 34

Genuineness

Question 35

This is when an advisor should be aware of their own value system, so they will not impose their values on their clients.

Answer 35

Self-awareness

Question 36

Is listening a form of communication?

Answer 36

Yes

Question 37

True or false. People generally assume their communications are understood by others.

Answer 37

True

Question 38

What leads to the most effective communication when listening to your client?

Answer 38

Paraphrasing

Question 39

The majority of communication occurs through…

Answer 39

Nonverbal means

Question 40

What type of listening he will use to interpret nonverbal behaviors?

Answer 40

Active listening

Question 41

Name the five types of responses.

Answer 41

1. Continuing response – smiling or nodding to encourage the speaker to continue.
2. Reflection-of-feeling response – responding to a client in an empathetic way by paraphrasing their words and feelings.
3. Restatement-of-content response – repeating what the speaker said which can encourage the speaker to continue.
4. Clarifying response – translating client words into a more understandable language without adding anything new.
5. Summarization response – summarizing a series of scattered ideas and make it more focused.

Question 42

This is when the advisor takes the lead and deviates from the clients responses to another topic.

Answer 42

Leading responses

Question 43

What are the four types of leading responses?

Answer 43

1. Reassuring – bolsters the clients spirits.
2. Interpretive - interprets what the client just said, like why the client is afraid to retire early.
3. Suggestive – giving advice to clients
4. Explanatory – neutral explanation of General fact, almost like explaining and annuity

Question 44

Questioning is another type of communication technique. Not done correctly how can it affect the advisors and the clients relationship?

Answer 44

I could put the advisor in the role of the authority figure and the client as a passive subordinate.

Question 45

What are the six types of questioning when use as a type of communication technique?

Answer 45

1. Open end questions – most effective and used to get opinions from the client.
2. Closing questions – limiting and uses yes or no answers.
3. Leading question – could be used to manipulate the client, usually begins with “Are you sure…”
4. Why questions – can put the client into a defensive mode
5. True/false or either/or questions – you will usually get limiting responses
6. Question Bombardment – asking questions without waiting for the answer.