n NISM Certifications
NSM General NISM
Medium

Which analogy best explains the concept of Expense Ratio to clients?

Practice question from B8-S5 Client Interactions — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Like paying rent for an apartment you're living in

  2. Like paying a chef for preparing your meal at a restaurant

    Correct answer

  3. C

    Like paying insurance premiums for protection

  4. D

    Like paying interest on a loan

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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