Friday Five – 10 July – 5 Questions in 5 Minutes
Last updated on July 21st, 2020 at 2:44 am
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 2019/20, examinable by the CII until 31 August 2020. They do not relate to tax year 2020/21 which is only examinable by the CII from 1 September 2020.
- What are the Bank of England’s two core purposes?
- Consumer protection and financial stability
- Monetary stability and financial stability
- Managing competition and consumer protection
- Integrity of UK financial system and managing competition
- Yellowstone’s accounts show that dividends paid to ordinary shareholders over the last 12 months was £315,000 whilst dividends paid to preference shareholders was £175,000. Their profit after taxation was £1,114,000. What is their dividend cover?
- 3.54 times
- 2.98 times
- 1.98 times
- 6.37 times
- The trustees of a family trust have recently bought a house with trust funds and will allow the beneficiary to live in it as their main residence. For Capital Gains Tax (CGT) purposes HMRC will only allow them to claim the principal private residence exemption on a later sale of the property if:
- the beneficiary has an interest in possession.
- holdover relief was claimed on the transfer of the property to the trust.
- the trust is held on a discretionary basis.
- the beneficiary has an absolute interest.
- Chan is 59 and approaching retirement. He is considering his options regarding his pension arrangements and is interested in phasing benefits. Which approach would he not be able to take when seeking to do this?
- Phased flexible annuity purchase
- Phased capped drawdown
- Phased flexi-access drawdown
- The phased taking of UFPLS
- Under total and permanent disability, which of the following definitions is the strictest in terms of when a critical illness cover would pay out?
- Unable to do a suited occupation ever again
- Unable to look after oneself ever again
- Unable to do one’s own occupation ever again
- Unable to do three specified work tasks ever again
- B – See R01 Study Text, Chp 4
Grab our taster mock exam paper for CII R01. Click here to download.
- B – See R02 Study Text, Chp 1:2
Grab our taster mock exam paper for CII R02. Click here to download.
- A – See R03 Study Text, Chp 3
Grab our taster mock exam paper for CII R03. Click here to download.
- B – See R04 Study Text, Chp 6:2
Grab our taster mock exam paper for CII R04 Click here to download.
- B – See R05 Study Text, Chp 7
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?
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