Friday Five – 17 February – 5 Questions in 5 Minutes
Welcome to this week’s Friday Five – 5 Questions in 5 Minutes Every Friday
What’s this all about?
It’s a bit of Friday Fun where we provide you with 5 questions relevant to a mix of CII exams. The challenge is for you to answer them in 5 minutes. Answers at the bottom of the page.
These questions relate to examinable tax year 2016/17, examinable until 31 August 2017.
- What is the difference in legal status between an IFA and a representative of a product provider?
- A provider’s representative is the agent of the provider, an IFA is the agent of the client
- A provider’s representative can only be self-employed whereas an IFA can be a sole trader, partnership or limited company
- A provider’s representative can only offer advice in one product area, whereas an IFA can offer advice from across the financial services spectrum
- A provider representative acts as an introducer only, an IFA is authorised to advise
- If a company’s share price rose from 175p to 225p, what effect would this have on its Price Earnings Ratio?
- It would increase
- It would decrease
- It would remain the same
- It would have no effect
- Pippa died in the tax year 2002/2003 using 50% of the then Inheritance Tax nil-rate band of £250,000. If her husband David dies in this tax year his executors could apply for the nil rate band to be extended to:
- Caroline died aged 66 with uncrystallised funds valued at £1,600,000. What is the lifetime allowance charge (if any) if benefits over the lifetime allowance are paid as a dependant’s lifetime annuity within two years of her death?
- No charge.
- The yield on a two-year gilt is 0.5% and the yield on a ten-year gilt is 1.5%. What is the 2/10 spread?
- 100 basis points
- 100 pips
- + 1%
- – 1%
- A – See R01 Study Text, Chp 7
Grab our taster mock exam paper for CII R01. Click here to download.
- A – See R02 Study Text, Chp 1:2
Grab our taster mock exam paper for CII R02. Click here to download.
- B – See R03 Study Text, Chp 4
Grab our taster mock exam paper for CII R03. Click here to download.
- C – See R04 Study Text, Chp 2.2
Grab our taster mock exam paper for CII R04. Click here to download.
- A – See J12 Study Text, Chp 9
Grab our taster mock exam paper for CII J12. Click here to download.
How did you find this week’s questions? Did you complete them in 5 minutes? Did you get them all correct? Do you disagree with any?
Do let us know by leaving a comment below – we promise to read them all. (Humour particularly appreciated on a Friday!)