n NISM Certifications
NSM General NISM
Medium

Which of the following best reflects transparency in advisory relationships?

Practice question from Advanced B1 S6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Hiding investment risks

  2. B

    Sharing only positive performance updates

  3. C

    Avoiding difficult conversations

  4. Clearly communicating risks, processes, and expectations

    Correct answer

Why this is the answer

Transparency strengthens credibility and trust, especially with affluent clients who expect honesty and clarity.

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