JAIIB RBWM Unit 23 — Importance of Wealth Management: Free MCQs with Explanations
By Swarnakshi Jha (ex-banker) · Updated 2 November 2026 · Paper 4 of the November 2026 cycle (29 November 2026)
This page is a free slice of our JAIIB RBWM question bank for Unit 23 — Importance of Wealth Management (Module D — Wealth Management). The Mock Centre holds 59 questions on this unit alone, every one with a why-right / why-wrong explanation; below are the facts examiners keep returning to, five of those questions to try, and the traps that cost marks.
RBWM · Module D59 MCQs in the Mock Centre5 free belowPaper on 29 November 2026
Key facts examiners test from this unit
Wealth management = combined investment advisory for affluent clients; fees on AUM; international = GLOBAL wealth management; four aspects — investment needs, products/ services, planning, estate planning (NOT loan recovery).
Bonds: fixed-income; perpetual = no maturity; 7.75% GOI (2018, replaced 8%; min ₹1,000; taxable; no NRIs/minors); SGB (99% purity, 5-year exit, CG-exempt); zero-coupon = discount; IIB = CPI/WPI-linked.
Law update, November 2026. The 7.75% bond was itself closed on 28 May 2020 and replaced by the Floating Rate Savings Bonds (Taxable) 2020 — 7-year tenor, rate reset every six months at the NSC rate + 0.35%. 'Per the textbook' → the 7.75% bond replaced the 8% bond. The 7.75% bonds closed on 28 May 2020; the Floating Rate Savings Bonds 2020 (Taxable) replaced them. No new SGB tranche has been issued since February 2024; existing bonds continue to maturity.
5 free practice questions — tap an option
Five basic questions from this unit. Answers lock on the first tap, exactly as in the exam, and a short explanation opens underneath. The Mock Centre adds the moderate and tough questions, why every other option is wrong, the concept capsule and the exam tip — with your score and revision dates tracked.
Question 1 of 5
Wealth management fees are generally based on:
Why (c): Wealth management fees are generally based on ASSETS UNDER MANAGEMENT — a percentage of the money managed, so the manager earns more only when the client's wealth grows.
Question 2 of 5
The amount charged for a given insurance coverage:
Why (b): The amount charged for insurance coverage is the PREMIUM — the price of protection, paid to keep the promise alive.
Question 3 of 5
An Indian mutual fund is managed by a:
Why (b): An Indian mutual fund is managed by a FUND MANAGER — a professional making the buy-sell decisions for the pooled money. Professional management is the product's core promise.
Which policy is the cheapest way to buy a large lump-sum death cover?
Why (a): Term insurance is pure protection with no savings element, so a large sum assured costs the least premium; it pays the nominee if death occurs within the term.
0 of 5 answered.
Traps in this unit
Confusable A
Confusable B
The difference
Assess
Identify goals
Step 1 vs step 2
Asset allocation
Tactical
Long-term mix vs short-term tilts
Practise all 59 questions on Unit 23. The free demo opens a slice of every subject with the same explanations; the RBWM Online-only pass unlocks all 1,900+ RBWM questions, the full and module mocks, Smart Revision and the Readiness Score for 18 months (₹1,299). Not sure where you stand? Sit the free 120-question mock first (all four papers, questions drawn from pages like this one, real exam screen).
Independent study aid — not affiliated with, endorsed by, or sponsored by the Indian Institute of Banking & Finance (IIBF). Exam pattern, dates, fees and passing criteria are set by IIBF — always confirm the current rules at iibf.org.in. Regulatory figures verified as of November 2026; verify from official sources before relying on them in practice.
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