Friday Five – 14 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.
These questions relate to examinable tax year 2018/19, examinable until 31 August 2019.
- If a client said that all of their current investments were in emerging market funds, what might this indicate to the adviser?
- That the client was considering retiring abroad
- That the client has little confidence in the UK stock market
- That the client was reckless
- That the client has an adventurous attitude to risk
- If an investment has a mean of 5% and a standard deviation 6%, you would expect 95% of returns to fall between:
- -1% and 11%
- -5% and 15%
- -7% and 17%
- 1% and 16%
- Alex has recently bought £5,400 worth of shares through an online platform provider. Which of the following is he liable for?
- Stamp duty of £30
- Stamp duty of £27
- Stamp duty reserve tax of £30
- Stamp duty reserve tax of £27
- In 2018/19, Paul receives a salary of £116,000. He has savings interest of £1,000 and dividend income of £40,000. Paul is a member of his employer’s occupational defined contribution pension scheme and contributions are paid via the net pay arrangement. In 2018/19 Paul pays £20,000 gross to the scheme and his employer pays £10,000.
Calculate Paul’s tapered annual allowance.
- Karen has a combined life assurance and critical illness policy. What will happen to the sum assured on death if she makes a claim on the diagnosis of a critical illness?
- It will continue at the original amount for a maximum of five years
- It will continue at half the original amount
- It will only continue to exist if Karen survives for a minimum of two years
- It will not exist as the policy has paid out an accelerated death payment
- D – See R01 Study Text, Chp 8
Grab our taster mock exam paper for CII R01. Click here to download.
- C – See R02 Study Text, Chp 3
Grab our taster mock exam paper for CII R02. Click here to download.
- D – See R03 Study Text, Chp 7
Grab our taster mock exam paper for CII R03. Click here to download.
- A – See R04 Study Text, Chp 2.1
Grab our taster mock exam paper for CII R04. Click here to download.
- D – 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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