Friday Five – 15 March – 5 Questions in 5 Minutes
Last updated on September 25th, 2019 at 4:17 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.
Questions
These questions relate to examinable tax year 2018/19, examinable until 31 August 2019.
- What is the difference between gilts and corporate bonds?
- Corporate bonds are guaranteed as they are government backed, but gilts offer no such guarantee.
- 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.
- Gilts are loans to the government, whilst corporate bonds are loans to companies.
- Corporate bonds pay interest to the investor, whilst gilts pay no interest.
- 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?
- £7,000.00
- £7,462.15
- £7,472.72
- £7,500.00
- 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?
- £7,500 will be deducted from the list price.
- £5,000 will be deducted from the list price.
- The contribution is ignored in the calculation.
- The first £2,500 of the contribution is deducted.
- In considering ISAs as a means of building up funds for retirement, your client should be aware that: Tick all that apply.
- Tax relief is available at basic rate.
- Equity ISA funds have the same tax treatment as a pension fund.
- ISAs may not provide the maximum savings input that a high earner may desire.
- There is no need to purchase an annuity or secure an income.
- The Office of Care and Protection is the administrative arm of the Court of Protection in?
- Scotland only
- England, Wales and Northern Ireland
- Northern Ireland only
- England and Northern Ireland
Answers
- C – See R01 Study Text, Chp 2
Grab our taster mock exam paper for CII R01. Click here to download.
- B – See R02 Study Text, Chp 4
Grab our taster mock exam paper for CII R02. Click here to download.
- B – See R03 Study Text, Chp 1
Grab our taster mock exam paper for CII R03. Click here to download.
- BCD – See R04 Study Text, Chp 8
Grab our taster mock exam paper for CII R04. Click here to download.
- 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?
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