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Friday Five – 15 November – 5 Questions in 5 Minutes

Friday Five – 15 November – 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 2019/20, examinable until 31 August 2020.

  1. What is the maximum payout under the Financial Services Compensation Scheme for home finance mediation activities?
    1. 100% of £50,000
    2. 100% of £85,000
    3. 90% of the claim with no limit
    4. 100% of the claim with no limit
  1. What does reinvestment risk refer to?
    1. A potential penalty suffered on early encashment within a fixed rate notice period
    2. Fluctuating interest rates on variable savings accounts
    3. The inability to secure the same level of interest on maturing money from fixed-rate accounts
    4. The withdrawal of maturity investment options on monies in fixed-rate and variable-rate accounts
  1. Sylvia is hoping to make up a significant gap in her National Insurance record by paying Class 3 contributions. Which of the following must she be aware of?
    1. She must satisfy a residence condition.
    2. They do not increase entitlement to State pension.
    3. The contributions are collected weekly by demand.
    4. She can make class 3 contributions after she reaches State pension age.
  1. Which of the following rules regarding trivial commutation by a pension member are TRUE? Tick all that apply.
    1. Facility is not available until age 60.
    2. There is a 12-month commutation period.
    3. The commutation limit is £30,000 across all schemes.
    4. All of the resulting proceeds will be tax-free.
  1. Graeme has set up an accident, sickness and unemployment insurance policy. Which of the following statements CORRECTLY explains the payment of his premiums and the tax treatment of the benefits?
    1. There is tax relief available on the premiums but the benefits are taxable.
    2. There is no tax relief on the premiums and the benefits are tax-free.
    3. There is no tax relief on the premiums and the benefits are taxable.
    4. There is tax relief available on the premiums and the benefits are tax-free.

 

Answers

  1. B – See R01 Study Text, Chp 6
    Grab our taster mock exam paper for CII R01. Click here to download.
  1. C – See R02 Study Text, Chp 1:1
    Grab our taster mock exam paper for CII R02. Click here to download.
  1. A – See R03 Study Text, Chp 2
    Grab our taster mock exam paper for CII R03. Click here to download.
  1. BC – See R04 Study Text, Chp 6:1
    Grab our taster mock exam paper for CII R04. Click here to download.
  1. B – See R05 Study Text, Chp 9
    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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