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Friday Five – 17 July 2015 – 5 Questions in 5 Minutes

Friday Five – 17 July 2015 – 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.

The clock is ticking…

 

Questions
These questions relate to examinable tax year 2014/15, examinable until 31 August 2015.

  1. What was the main objective of the Financial Services and Markets Act 2000?
    1. To bring together the regulation of all sectors of the UK financial services industry under one regulatory system.
    2. To provide a distinction for different sectors of the financial services sector e.g. friendly societies and insurance companies
    3. To provide more stability for Self Regulating Organisations
    4. To provide guidance on the differences between regulated and non-regulated activities
  1. What is a limitation of using company investment ratios?
    1. In the event of a take-over bid ratios are unable to assist shareholders in assessing if assets are being given away too cheaply
    2. Ratios are company specific and so unable to provide a meaningful comparison with similar companies in the same sector
    3. They are unable to highlight any areas of a company that may require further scrutiny
    4. Accounting policies could be changed over time, thus making historical comparisons misleading
  1. Florence has recently become self-employed. She is aware that she will have to pay National Insurance contributions but wants to know how. You tell her that:
    1. Class 2 and class 4 are normally paid by monthly direct debit
    2. Class 2 is included with the income tax self-assessment and class 4 is normally paid by monthly direct debit
    3. Class 2 and class 4 are included with the income tax self-assessment
    4. Class 2 is normally paid by monthly direct debit and class 4 is included with the income tax self-assessment
  1. The minimum level of contribution for auto-enrolment purposes is:
    1. 13% of total earnings.
    2. 10% of qualifying earnings.
    3. 9% of total earnings.
    4. 8% of qualifying earnings.
  1. New rules on affordability came into effect from April 2014 in connection with lifetime mortgages. On whom will the onus to prove affordability fall?
    1. The intermediary
    2. The Benefits Agency
    3. The borrower
    4. The lender

 

 

Answers

  1. A – See R01 Study Text, Chp 4 Section A
    Grab our taster mock exam paper for CII R01. Click here to download.

 

  1. D – See R02 Study Text, Chp 1:2 Section C5F
    Grab out taster mock exam paper for CII R02. Click here to download.

 

  1. D – See R03 Study Text, Chp 2 Section B3
    Grab our taster mock exam paper for CII R03. Click here to download.

 

  1. D – See R04 Study Text, Chp 1 Section A2
    Grab our taster mock exam paper for CII R04. Click here to download.

 

  1. D – See ER1 Study Text, Chp 8 Section C1
    Grab our taster mock exam paper for CII ER1. 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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This post was brought to you by Brand Financial Training

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