Assessment: Verbal Reasoning Flashcards

Passage: 'RBC's wealth management division grew assets under management by 12% in 2024. Market indices grew by an average of 14% over the same period.' — What is the most accurate interpretation?

Answer: RBC's wealth management underperformed the broader market

RBC grew 12% while the market average grew 14%, meaning RBC's growth lagged the benchmark.

Which word is closest in meaning to 'diligent'?

Answer: Hardworking

'Diligent' means showing steady, careful effort — synonymous with hardworking.

Complete the analogy: EQUITY is to OWNERSHIP as BOND is to ___

Answer: Debt

Equity represents ownership in a company; a bond represents a debt obligation.

Passage: 'A bank can reject a loan application if the applicant's credit score is below 650 or if the debt-to-income ratio exceeds 43%. James has a credit score of 700 and a DTI of 48%.' — Can the bank reject James's application?

Answer: Yes, because his DTI exceeds 43%

The rule uses 'or' — satisfying either condition alone is sufficient grounds for rejection, and James's DTI exceeds 43%.

Which word is an antonym of 'volatile'?

Answer: Stable

'Volatile' means subject to rapid change; 'stable' is its direct antonym.

A memo states: 'Some advisors exceeded their quarterly targets. All advisors who exceeded targets received a bonus.' — Which must be true?

Answer: Some advisors received a bonus

Since some advisors exceeded targets and all who did received bonuses, at least some advisors received bonuses.

Which sentence uses the word 'liquidate' correctly in a financial context?

Answer: The investor chose to liquidate her portfolio and convert assets to cash

To liquidate assets means to convert them into cash by selling them.