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Friday Five – 17 February – 5 Questions in 5 Minutes

Friday Five – 17 February – 5 Questions in 5 Minutes

Friday Five - 5 Questions in 5 Minutes Every Friday

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.

Questions

These questions relate to examinable tax year 2016/17, examinable until 31 August 2017.

  1. What is the difference in legal status between an IFA and a representative of a product provider?
    1. A provider’s representative is the agent of the provider, an IFA is the agent of the client
    2. A provider’s representative can only be self-employed whereas an IFA can be a sole trader, partnership or limited company
    3. A provider’s representative can only offer advice in one product area, whereas an IFA can offer advice from across the financial services spectrum
    4. A provider representative acts as an introducer only, an IFA is authorised to advise
  1. If a company’s share price rose from 175p to 225p, what effect would this have on its Price Earnings Ratio?
    1. It would increase
    2. It would decrease
    3. It would remain the same
    4. It would have no effect
  1. 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:
    1. £650,000
    2. £487,500
    3. £450,000
    4. £325,000
  1. 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?
    1. No charge.
    2. £192,500.
    3. £150,000.
    4. £87,500.
  1. 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?
    1. 100 basis points
    2. 100 pips
    3. + 1%
    4. – 1%

 

Answers

  1. A – See R01 Study Text, Chp 7
    Grab our taster mock exam paper for CII R01. Click here to download.

 

  1. A – See R02 Study Text, Chp 1:2
    Grab our taster mock exam paper for CII R02. Click here to download.

 

  1. B – See R03 Study Text, Chp 4
    Grab our taster mock exam paper for CII R03. Click here to download.

 

  1. C – See R04 Study Text, Chp 2.2
    Grab our taster mock exam paper for CII R04. Click here to download.

 

  1. 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!)

 

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