Nearly 1 million free-resource-downloads and-counting
Friday Five – 10 June – 5 Questions in 5 Minutes

Friday Five – 10 June – 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 must be included within a Client Agreement? – tick all that apply
    1. Regulation by the FCA
    2. The IFA’s contact details
    3. Any restrictions
    4. Risk warnings
  1. A savings account pays a nominal rate of interest at 6%, this is compounded monthly. What is the effective rate of interest?
    1. 6.72%
    2. 6.47%
    3. 6.17%
    4. 6.62%
  1. Under the identification rules used for calculating CGT on shares of the same type and class acquired at different times, how are shares grouped? Tick all that apply
    1. Acquisitions within the following 90 days
    2. Acquisitions on the same day
    3. Acquisitions arising from a rights issue
    4. Acquisitions in the share pool
  1. Why might an employer decide to provide death in service benefits through a separate insured scheme as opposed to through a defined benefit scheme?
    1. To maintain death in service benefits without draining the fund.
    2. To treat the death in service benefits as an allowable expense.
    3. If the employees were all below 45.
    4. As the defined benefit scheme is fairly large.
  1. An investor buys £2,000 worth of 6% Treasury Stock 2016 priced at £106.16. What is the flat yield?
    1. 17.6%
    2. 7.6%
    3. 5.66%
    4. 5.65%

 

Answers

  1. ACD – See R01 Study Text, Chp 7, Section B3C
    Grab our taster mock exam paper for CII R01. Click here to download.

 

  1. C – See R02 Study Text, Chp 4, Section A3
    Grab our taster mock exam paper for CII R02. Click here to download.

 

  1. BD – See R03 Study Text, Chp 3, Section G1
    Grab our taster mock exam paper for CII R03. Click here to download.

 

  1. A – See R04 Study Text, Chp 4.1, Section C4C
    Grab our taster mock exam paper for CII R04. Click here to download.

 

  1. D – See J12 Study Text, Chp 2, Section G2A
    Grab our taster mock exam paper for CII J12. 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!)

 

Don't want to miss the Friday Five? Click here to sign up for email notification of new posts.