Friday Five – 18 December – 5 Questions in 5 Minutes
Last updated on September 25th, 2019 at 4:39 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.
These questions relate to examinable tax year 2015/16, examinable until 31 August 2016.
- What is the definition of money laundering?
- Where criminals convert illegally obtained money into apparently legitimate funds
- The process of withdrawing regular amounts of cash from an investment bond
- A series of transactions through financial products
- Investing money under a false identity
- What is a limitation of using company investment ratios?
- In the event of a take-over bid ratios are unable to assist shareholders in assessing if assets are being given away too cheaply
- Ratios are company specific and so unable to provide a meaningful comparison with similar companies in the same sector
- They are unable to highlight any areas of a company that may require further scrutiny
- Accounting policies could be changed over time, thus making historical comparisons misleading
- Martin is considering investing in gilt-edged securities. He should be aware that: Tick all that apply
- interest is usually paid twice a year
- interest is taxed on a current year basis as earned income
- he can sell them at any point on the stock exchange
- he can claim any losses against future capital gains
- Where a member of a DB scheme is offered the option of giving up future guaranteed increases to their pension in return for a higher initial pension with no future increases, this is known as pension:
- increase exchange.
- inflation exchange.
- How long does the FCA specify that a firm should retain records of customer information and the rationale for recommendations given?
- One year
- Six years
- Three years
- A – See R01 Study Text, Chp 6 Section E1
Grab our taster mock exam paper for CII R01. Click here to download.
- D – See R02 Study Text, Chp 1:2 Section C5F
Grab our taster mock exam paper for CII R02. Click here to download.
- AC – See R03 Study Text, Chp 9 Section A4A
Grab our taster mock exam paper for CII R03. Click here to download.
- B – See R04 Study Text, Chp 4:1 Section C1B
Grab our taster mock exam paper for CII R04. Click here to download.
- C – See ER1 Study Text, Chp 2 Section C4
Grab our taster mock exam paper for CII ER1. 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!)