Friday Five – 15 December – 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. What is the definition of money laundering?
   1. Where criminals convert illegally obtained money into apparently legitimate funds
   2. The process of withdrawing regular amounts of cash from an investment bond
   3. A series of transactions through financial products
   4. Investing money under a false identity

2. What does liquidity risk refer to?
   1. The issuer of a security being unable to repay capital or interest
   2. A new government changing fiscal policy
   3. An investor being forced to sell a security at a price below its fair value
   4. The value of sterling appreciating against a foreign currency

3. Alex has recently bought £5,400 worth of shares through an online platform provider. Which of the following is he liable for?
   1. Stamp duty of £30
   2. Stamp duty of £27
   3. Stamp duty reserve tax of £30
   4. Stamp duty reserve tax of £27

4. Although no set survival period is specified in the ABI best practice, which of the following reflects the typical range of survival periods for critical illness cover on the market?
   1. 7 – 14 days
   2. 10 – 14 days
   3. 14 – 21 days
   4. 14 – 30 days

5. Heather has been a member of her employer’s cash balance pension scheme for many years. She is now joining another employer and is considering transferring her existing pension which would be defined as including what type of benefits?
   1. Safeguarded benefits only.
   2. Flexible benefits only.
   3. Non-protected rights only.
   4. Flexible benefits, safeguarded benefits and non-protected rights.

Answers

1. A – See R01 Study Text, Chp 6
   Grab our taster mock exam paper for CII R01. Click here to download.

2. C – See R02 Study Text, Chp 5
   Grab our taster mock exam paper for CII R02. Click here to download.

3. D – See R03 Study Text, Chp 7
   Grab our taster mock exam paper for CII R03. Click here to download.

4. D – See R05 Study Text, Chp 7
   Grab our taster mock exam paper for CII R05. Click here to download.

5. B – See R08 Study Text, Chp 3
   Grab our taster mock exam paper for CII R08. 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!)