RBC Assessment: Verbal Reasoning 3 — Questions and Answers
Question 1: Passage: 'RBC introduced a new fraud detection algorithm in January. Fraud cases reported dropped by 22% by June. The algorithm also flagged 5% more legitimate transactions as suspicious.' — What can be inferred?
- The algorithm eliminated fraud entirely
- The algorithm reduced fraud but introduced some false positives (Correct answer)
- The 5% flag rate makes the algorithm ineffective
- Customers stopped committing fraud due to awareness
Correct answer: The algorithm reduced fraud but introduced some false positives
The algorithm reduced fraud reports by 22% but created a trade-off with a 5% increase in false positive flags.
Question 2: Which word is most similar in meaning to 'mitigate'?
- Worsen
- Ignore
- Reduce (Correct answer)
- Transfer
Correct answer: Reduce
'Mitigate' means to lessen or reduce the severity of something.
Question 3: Choose the pair that best matches the relationship: INTEREST : LOAN
- Dividend : Stock (Correct answer)
- Tax : Income
- Fee : Service
- Principal : Mortgage
Correct answer: Dividend : Stock
Interest is the cost/return generated by a loan; a dividend is the return generated by a stock.
Question 4: 'Every client who completed onboarding received a welcome kit. Maya received a welcome kit.' What can be concluded?
- Maya completed onboarding
- Maya did not complete onboarding
- Maya may or may not have completed onboarding (Correct answer)
- Welcome kits are given only to new clients
Correct answer: Maya may or may not have completed onboarding
The logic runs one way: completing onboarding → welcome kit, but receiving a kit doesn't confirm onboarding was completed.
Question 5: Passage: 'Employee turnover at financial institutions averages 18% annually. Firms investing in professional development see turnover rates of 11%.' — Which conclusion is best supported?
- Professional development guarantees employee retention
- Investment in development is associated with lower turnover (Correct answer)
- All firms should immediately invest in development programs
- Turnover is caused solely by lack of development opportunities
Correct answer: Investment in development is associated with lower turnover
The data shows an association between development investment and lower turnover, but does not prove causation or guarantee outcomes.
Question 6: Which word best fills the blank: 'The auditor's findings were ___; every department had kept accurate records.'
- Alarming
- Inconclusive
- Reassuring (Correct answer)
- Disputed
Correct answer: Reassuring
Accurate records across all departments would make an auditor's findings reassuring, not concerning.
Question 7: Which statement is logically equivalent to: 'If a transaction exceeds $10,000, it must be reported.'?
- All transactions must be reported
- If a transaction is not reported, it did not exceed $10,000 (Correct answer)
- Transactions under $10,000 cannot be reported
- Reporting only applies to international transactions
Correct answer: If a transaction is not reported, it did not exceed $10,000
The contrapositive of 'If A then B' is 'If not B then not A' — if not reported, the amount was not over $10,000.
RBC Assessment: Verbal Reasoning 3
Passage: 'RBC introduced a new fraud detection algorithm in January.
Fraud cases reported dropped by 22% by June.
The algorithm also flagged 5% more legitimate transactions as suspicious.' — What can be inferred?