Friday Five – 15 January – 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 2015/16, examinable until 31 August 2016.
- The rules around the selling and marketing of general insurance and pure protection life policies are contained within which of the following?
- If two assets have a correlation of 0.25, what does this tell us about their relationship within a portfolio?
- They are closely linked and would therefore increase the volatility within a portfolio
- They are negatively correlated and will move in opposite directions
- They are positively correlated and you would expect them to move in the same direction at the same time
- They have low correlation so would reduce volatility within a portfolio
- Amelia makes a transfer into a discretionary trust of £500,000 for the benefit of her four grandchildren. She has already used her annual allowances for this year and the previous year. What Inheritance Tax is now due on this transfer assuming the trustees pay the tax?
- Which type of pension arrangement will ALWAYS provide benefits via a Scheme Pension?
- Retirement Annuity.
- Occupational Defined Benefit.
- Small Self Administered Scheme.
- Occupational Money Purchase.
- Eric executed an Enduring Powers of Attorney in 2005 and has now lost mental capacity without drawing up a Lasting Powers of Attorney. Which of the following is his attorney unable to do?
- Sign documents on behalf of Eric
- Sign cheques on behalf of Eric
- Make decisions about Eric’s personal care and welfare
- Dispose of Eric’s property
- A – See R01 Study Text, Chp 5:2 Section H2A
Grab our taster mock exam paper for CII R01. Click here to download.
- D – See R02 Study Text, Chp 8 Section B1
Grab our taster mock exam paper for CII R02. Click here to download.
- C – See R03 Study Text, Chp 4 Section B3
Grab our taster mock exam paper for CII R03. Click here to download.
- B – See R04 Study Text, Chp 2.2 Section D3A
Grab our taster mock exam paper for CII R04. Click here to download.
- C – See CF8 Study Text, Chp 9 Section C3A
Grab our taster mock exam paper for CII CF8. 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!)