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Friday Five – 15 March – 5 Questions in 5 Minutes

Friday Five – 15 March – 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 2018/19, examinable until 31 August 2019.

  1. What is the difference between gilts and corporate bonds?
    1. Corporate bonds are guaranteed as they are government backed, but gilts offer no such guarantee.
    2. Gilts are always bought and sold at their nominal rate, whereas corporate bonds are traded on the bond market so could be bought or sold for less than £100.
    3. Gilts are loans to the government, whilst corporate bonds are loans to companies.
    4. Corporate bonds pay interest to the investor, whilst gilts pay no interest.
  1. Jackie wishes to accumulate £10,000 at the end of 6 years. She is able to invest at a rate of 5%. What initial amount must she invest to achieve this capital sum?
    1. £7,000.00
    2. £7,462.15
    3. £7,472.72
    4. £7,500.00
  1. Simon makes a £7,500 contribution to his employer in respect of his new company car. How will this be treated when calculating the taxable benefit?
    1. £7,500 will be deducted from the list price.
    2. £5,000 will be deducted from the list price.
    3. The contribution is ignored in the calculation.
    4. The first £2,500 of the contribution is deducted.
  1. In considering ISAs as a means of building up funds for retirement, your client should be aware that: Tick all that apply.
    1. Tax relief is available at basic rate.
    2. Equity ISA funds have the same tax treatment as a pension fund.
    3. ISAs may not provide the maximum savings input that a high earner may desire.
    4. There is no need to purchase an annuity or secure an income.
  1. The Office of Care and Protection is the administrative arm of the Court of Protection in?
    1. Scotland only
    2. England, Wales and Northern Ireland
    3. Northern Ireland only
    4. England and Northern Ireland

 

Answers

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

 

  1. B – See R02 Study Text, Chp 4
    Grab our taster mock exam paper for CII R02. Click here to download.

 

  1. B – See R03 Study Text, Chp 1
    Grab our taster mock exam paper for CII R03. Click here to download.

 

  1. BCD – See R04 Study Text, Chp 8
    Grab our taster mock exam paper for CII R04. Click here to download.

 

  1. C – See CF8 Study Text, Chp 9
    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?

If you found this quiz useful for your CII exam revision, please do share it with your colleagues.

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