Friday Five – 12 August – 5 Questions in 5 Minutes
Last updated on September 25th, 2019 at 4:36 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 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.
- What would the general priorities be for a client before they considered saving and investment?
- Pay off all debts and put any required protection plans in place immediately
- Pay off expensive debts, protect the family, then put an emergency fund in place
- Complete an income and expenditure analysis to determine any surplus income
- Put an emergency fund and protection in place first
- How can an Investment Trust implement financial gearing? Tick all that apply
- Issue debentures
- Exercise warrants
- Issue unsecured loan stock
- Arrange a bank loan in a foreign currency
- Maxine is considering whether to invest in Friendly Society policies for each of her 3 children and has asked you to supply some information. You tell her that: Tick all that apply
- The maximum monthly premium is £25
- Premiums can only be paid monthly
- Friendly societies cannot reclaim the 10% tax credit on dividends
- She can only have one policy per family
- Deborah, who is retiring has a relatively low attitude to investment risk. She wishes to purchase a lifetime annuity and is seeking advice. What would be the MOST suitable advice for Deborah?
- She should purchase a conventional lifetime annuity.
- You should establish her capacity for loss before a suitable recommendation can be made.
- She should designate her funds into flexi-access drawdown.
- She should purchase a flexible lifetime annuity.
- Unit trusts and OEICs have to publish their TER (total expense ratio). Which of the following most accurately describes the charges included?
- Trustee fees, annual charge, registrar and auditor charges
- Initial charge, annual charge and auditor charges
- Auditor charges and trustee fees
- Initial charge, annual charge, trustee fees and registrar charges
- B – See R01 Study Text, Chp 2, Section B6
Grab our taster mock exam paper for CII R01. Click here to download.
- ACD – See R02 Study Text, Chp 6:1, Section G11
Grab our taster mock exam paper for CII R02. Click here to download.
- AC – See R03 Study Text, Chp 10, Section F3
Grab our taster mock exam paper for CII R03. Click here to download.
- B – See R08 Study Text, Chp 7, Section A2
Grab our taster mock exam paper for CII R08. Click here to download.
- A – See J12 Study Text, Chp 4, Section A4
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?
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