Friday Five – 10 November – 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 2017/18, examinable until 31 August 2018.

1. According to the regulator, good management information (MI) should display what a manager can directly influence or something that they can escalate to someone who can take the necessary action. Which of the regulator’s principles of good management information (MI) does this statement relate to?
   1. Accuracy
   2. Timeliness
   3. Relevance
   4. Consistency

2. Tom is considering investing in an onshore single premium life assurance bond. He should be aware that: Tick all that apply.
   1. the fund suffers tax on income and capital gains at a rate of 10%
   2. maturity of the bond will be treated as a chargeable event
   3. surrender of the bond may give rise to a 25% Income Tax liability
   4. if he later assigns the policy to his wife this will not be a chargeable event

3. In 2015/16 Joy’s pension input into her SIPP was £5,000 in the pre-alignment tax year and £20,000 in the post-alignment tax year. What is the maximum amount that Joy can carry forward from 2015/16?
   1. £15,000.
   2. £20,000.
   3. £35,000.
   4. £55,000.

4. Maureen has taken out a budget plan private medical insurance policy. If she makes a claim, which of the following costs is unlikely to be covered?
   1. Home nursing
   2. Doctor’s fees
   3. Drugs
   4. Accommodation

5. Modern portfolio theory (MPT) categorises risk as being one of two types. Between 1973 – 1974 the UK experienced the great bear market. Which of MPT’s two types of risk would this event be categorised as?
   1. Beta risk
   2. Non-systematic risk
   3. Systematic risk
   4. Investment-specific risk

Answers

1. C – See R01 Study Text, Chp 10
   Grab our taster mock exam paper for CII R01. Click here to download.

2. BCD – See R03 Study Text, Chp 10
   Grab our taster mock exam paper for CII R03. Click here to download.

3. B – See R04 Study Text, Chp 2:1
   Grab our taster mock exam paper for CII R04. Click here to download.

4. A – See R05 Study Text, Chp 9
   Grab our taster mock exam paper for CII R05. Click here to download.

5. C – See J10 Study Text, Chp 7
   Grab our taster mock exam paper for CII J10. 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!)