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Friday Five – 10 January – 5 Questions in 5 Minutes

Friday Five – 10 January – 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

These questions relate to examinable tax year 2019/20, examinable until 31 August 2020.

  1. Regulated larger firms must maintain resources to cover risks and must carry out risk assessment and stress testing scenarios as required by the:
    1. Fixed overheads Directive
    2. Financial resources Directive
    3. Capital Adequacy Directive
    4. Capital Requirements Directive
  1. A fund manager pays no attention to index benchmarks in his portfolio construction. What method of portfolio construction would this suggest?
    1. Passive
    2. Tracker
    3. Top-down
    4. Bottom-up
  1. Jason has a holding of Permanent Interest Bearing Shares (PIBS) and his friend Michael has a holding of Gilts. Jason wants to know how his holding differs from Michael’s. You can tell him that:
    1. only PIBS are exempt from CGT on any profit arising from a sale
    2. only the interest from PIBS is taxable as savings income
    3. only the interest from PIBS is always paid gross
    4. only PIBs can be traded on the stock market
  1. ABC Ltd agreed to provide Dennis with pension term assurance, paid for by the company and this was put in place in October 2006. Following the review in December 2006 and the later Budget, ABC Ltd would now have to:
    1. cancel any term assurance for Dennis
    2. forego any tax relief on the premiums
    3. segregate the life cover
    4. continue with the contract as a business expense
  1. Beverly and Ian have limited disposable income. They want a life assurance policy as protection for their children but do not know how long they will need the protection for. Which of the following options would be the most suitable?
    1. A term assurance policy with a renewability option
    2. A term assurance policy with a convertible option
    3. A whole of life policy
    4. A family income benefit policy

 

Answers

  1. D – See R01 Study Text, Chp 5:2
    Grab our taster mock exam paper for CII R01. Click here to download.
  1. D – See R02 Study Text, Chp 8
    Grab our taster mock exam paper for CII R02. Click here to download.
  1. C – See R03 Study Text, Chp 9
    Grab our taster mock exam paper for CII R03. Click here to download.
  1. D – See R04 Study Text, 5
    Grab our taster mock exam paper for CII R04. Click here to download.
  1. A – See R05 Study Text, Chp 4
    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?

If you found this quiz useful for your CII exam revision, please do share it with your colleagues.

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