As you interview with residency programs, a question like this will be asked for two distinct reasons. First and foremost, some residency programs are highly competitive to get into because the demand among prospective residents is so high. As well, training as a resident once in the doors of the institution can be highly competitive as well in the pursuit of achieving chief resident status and other accolades down the road. The interviewers wants to determine if you function well in a competitive environment as they look to consider you for their program.