Friday Five – 11 September – 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 2020/21, examinable by the CII until 31 August 2021.

1. Universal credit is usually paid:
   1. weekly
   2. monthly
   3. every 6 weeks
   4. every 8 weeks

2. Harry is interested in money market funds. Which of the following types of risk should he be particularly aware of?
   1. Event risk
   2. Interest rate risk
   3. Systematic risk
   4. Diversification risk

3. Fred and Nancy have a Child Trust Fund for their 11-year-old daughter as well as holding a Cash ISA and a Stocks and Shares ISA. They are looking around for better providers and have asked you for advice as to the type of transfer they can do. Which of the following would they be unable to do?
   1. The Child Trust Fund to a Cash ISA
   2. The Child Trust Fund to a Junior ISA
   3. The Stocks & Shares ISA to a Cash ISA
   4. The Cash ISA to another Cash ISA

4. The Pension Ombudsman would be expected to investigate problems concerning:
   1. the sale of a Stakeholder pension.
   2. the amount payable under the State pension.
   3. the appropriateness of a new Trustee to a company pension scheme.
   4. the marketing of a Self-invested personal pension plan.

5. Which of the following statements correctly explains the guaranteed insurability option on a life assurance policy?
   1. It provides a guaranteed increase to the sum assured by a stated percentage every five years
   2. It allows the policyholder to increase the sum assured by the rate of inflation every ten years without the need for further underwriting
   3. It allows the policyholder to increase the sum assured on stated events within a specified time period without the need for further underwriting
   4. It guarantees to increase the sum assured every year in line with the increase in prices

Answers

1. B – See R01 Study Text, Chp 2
   Grab our taster mock exam paper for CII R01. Click here to download.

2. B – See R02 Study Text, Chp 1
   Grab our taster mock exam paper for CII R02. Click here to download.

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

4. C – See R04 Study Text, Chp 4
   Grab our taster mock exam paper for CII R04 Click here to download.

5. C – 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.