Friday Five – 10 August – 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.
IMPORTANT! These questions relate to examinable tax year 2017/18, examinable by the CII until 31 August 2018. They do not relate to tax year 2018/19 which is only examinable by the CII from 1 September 2018.
- Which of the following statements regarding ‘structured’ and ‘unstructured’ loans is incorrect?
- Structured loans are viewed as lower risk than unstructured
- Unstructured loans tend to be for larger amounts
- The interest rate applied on an unstructured loan is usually linked to a base rate
- There is often no collateral to back up a structured loan
- Stefan bought £1,000 nominal value of Treasury 7% 2016. What interest payment can he normally expect to receive?
- £70 every year
- £5.80 every month
- £35 every 6 months
- £23.33 quarterly
- Sarah is a basic rate taxpayer and in August 2013 took out a 10-year qualifying life policy as a savings plan. Regarding this policy, which of the following is true?
- If she is a UK resident she will receive full tax relief on the premiums
- For the policy to keep its qualifying status she cannot pay more than £36,000 in premiums over the term
- The premiums will be taken into account on maturity when a chargeable event is triggered
- The premiums must be paid monthly, annually or as a single premium
- Which features would you normally associate with a defined benefit scheme pension? Tick all that apply.
- Lump sum death benefits.
- Pension based on a percentage of salary.
- Guaranteed income for life.
- Prospect of investment growth.
- A comprehensive Private Medical Insurance policy will sometimes provide cover for which of the following in the context of long term care provision?
- Home Nursing
- The cost of treatment for long term incurable conditions
- A – See R01 Study Text, Chp 2
Grab our taster mock exam paper for CII R01. Click here to download.
- C – See R02 Study Text, Chp 1:1
Grab our taster mock exam paper for CII R02. Click here to download.
- B – See R03 Study Text, Chp 10
Grab our taster mock exam paper for CII R03. Click here to download.
- ABC – See R04 Study Text, Chp 6:1
Grab our taster mock exam paper for CII R04. Click here to download.
- A – See CF8 Study Text, Chp 4
Grab our taster mock exam paper for CII CF8. 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?
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