Friday Five – 16 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.
These questions relate to examinable tax year 2018/19, examinable until 31 August 2019.
- Insurable interest in contract law can also be thought of as a:
- financial interest
- equitable interest
- life interest
- legal interest
- Which of the following is not regarded as a limitation of the Efficient Frontier Model?
- It assumes standard deviation is the correct measure of risk
- It assumes that the underlying portfolios in each asset class are index funds
- The model does not include transaction costs
- It does not say which portfolio an investor would prefer
- Why might an offshore fund with reporting status be preferable for a UK investor than one without?
- Any gains on disposal are subject to normal CGT rules and taxed at 10% or 20%
- Investors can roll up gross income until they are liable for income tax at a lower rate
- Income can be accumulated in a low tax environment
- Tax is only payable on distribution of income or encashment
- Annuity rates have fallen in recent years due to the fact that people are living for longer and also because of:
- falling gilt yields
- rising equity prices
- lower charges
- higher inflation
- Alan has made a gain of £6,000 on his non-qualifying life assurance policy. This gain could be liable for:
- Higher or additional rates of income tax only
- Capital gains tax
- Income tax at Alan’s appropriate rates
- Income tax at Alan’s appropriate rates and capital gains tax
- A – See R01 Study Text, Chp 3
Grab our taster mock exam paper for CII R01. Click here to download.
- D – See R02 Study Text, Chp 3
Grab our taster mock exam paper for CII R02. Click here to download.
- A – See R03 Study Text, Chp 10
Grab our taster mock exam paper for CII R03. Click here to download.
- A – See R04 Study Text, Chp 1
Grab our taster mock exam paper for CII R04. Click here to download.
- A – See R05 Study Text, Chp 5
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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