Friday Five – 1 July – 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.

Questions

IMPORTANT! These questions relate to examinable tax year 2015/16, examinable by the CII until 31 August 2016. They do not relate to tax year 2016/17 which is only examinable by the CII from 1 September 2016.

1. What is the difference between an Enduring Power of Attorney and a Lasting Power of Attorney?
   1. A lasting power of attorney cannot be used to make gifts
   2. A lasting power of attorney allows the attorney to make decisions regarding the donor’s welfare as well as financial matters
   3. Under an Enduring power of attorney, power is only given in respect of the donor’s health and welfare
   4. Under an Enduring power of attorney, the attorney has to be over 18

2. Which of the following is one of the main types of security traded in the money markets?
   1. Traded endowments
   2. Exchanged traded funds
   3. Derivatives
   4. Commercial bills

3. Which of the following individuals would be entitled to National Insurance credits? Tick all that apply
   1. Harriet, aged 19, who is on an approved full time training course
   2. Charlotte who earns £140 a week
   3. Matt who is taking statutory paternity leave
   4. Archie, aged 55, who has retired
   5. Gemma who has left work to consider re-training

4. To be a lifetime annuity HMRC requires that the annuity must be:
   1. payable for the member’s life.
   2. purchased from a list of HMRC approved annuity providers.
   3. paid at least once a year in advance.
   4. capable of assignment and surrender in any circumstances.

5. Maureen who is currently on a sabbatical from work wants an income protection policy. Which of the following is the maximum amount of benefit likely to be available?
   1. £1,000 per month
   2. £100,000 over the lifetime of the policy
   3. £15,000 per year
   4. £250 per month

Answers

1. B – See R01 Study Text, Chp 3, Section B1A
   Grab our taster mock exam paper for CII R01. Click here to download.

2. D – See R02 Study Text, Chp 1:1, Section A5B
   Grab our taster mock exam paper for CII R02. Click here to download.

3. ABC – See R03 Study Text, Chp 2, Section A9A
   Grab our taster mock exam paper for CII R03. Click here to download.

4. A – See R04 Study Text, Chp 6:1, Section C2A
   Grab our taster mock exam paper for CII R04. Click here to download.

5. C – See R05 Study Text, Chp 6, Section C1
   Grab our taster mock exam paper for CII R05. 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!)