Nearly 1 million free-resource-downloads and-counting
Friday Five – 16 November – 5 Questions in 5 Minutes

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.

Questions

These questions relate to examinable tax year 2018/19, examinable until 31 August 2019.

  1. Insurable interest in contract law can also be thought of as a:
    1. financial interest
    2. equitable interest
    3. life interest
    4. legal interest
  1. Which of the following is not regarded as a limitation of the Efficient Frontier Model?
    1. It assumes standard deviation is the correct measure of risk
    2. It assumes that the underlying portfolios in each asset class are index funds
    3. The model does not include transaction costs
    4. It does not say which portfolio an investor would prefer
  1. Why might an offshore fund with reporting status be preferable for a UK investor than one without?
    1. Any gains on disposal are subject to normal CGT rules and taxed at 10% or 20%
    2. Investors can roll up gross income until they are liable for income tax at a lower rate
    3. Income can be accumulated in a low tax environment
    4. Tax is only payable on distribution of income or encashment
  1. Annuity rates have fallen in recent years due to the fact that people are living for longer and also because of:
    1. falling gilt yields
    2. rising equity prices
    3. lower charges
    4. higher inflation
  1. Alan has made a gain of £6,000 on his non-qualifying life assurance policy. This gain could be liable for:
    1. Higher or additional rates of income tax only
    2. Capital gains tax
    3. Income tax at Alan’s appropriate rates
    4. Income tax at Alan’s appropriate rates and capital gains tax

 

Answers

  1. A – See R01 Study Text, Chp 3
    Grab our taster mock exam paper for CII R01. Click here to download.

 

  1. D – See R02 Study Text, Chp 3
    Grab our taster mock exam paper for CII R02. Click here to download.

 

  1. A – See R03 Study Text, Chp 10
    Grab our taster mock exam paper for CII R03. Click here to download.

 

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

 

  1. 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?

Do let us know by leaving a comment below – we promise to read them all. (Humour particularly appreciated on a Friday!)

I've just answered this week's Friday Five CII exam questions - can you? #Fri5 Click To Tweet

 

Don't want to miss the Friday Five? Click here to sign up for email notification of new posts.