Friday Five – 19 April – 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

IMPORTANT!  These questions relate to examinable tax year 2018/19, examinable by the CII until 31 August 2019.  They do not relate to tax year 2019/20 which is only examinable by the CII from 1 September 2019.

1. When should a firm notify the FCA of its address change?
   1. Should inform the FCA immediately
   2. No requirement to inform the FCA
   3. Within 6 months of the address change
   4. In advance of the change in address

2. If interest is payable at more frequent intervals (than annually), how would the effective rate of interest be different to the nominal rate of interest?
   1. The effective rate reduces
   2. The nominal rate would be higher
   3. The effective rate would be higher
   4. There would be no difference

3. Jack is aged 68 and has worked for the same employer for over 40 years. Which of the following statements regarding National Insurance Contributions is correct?
   1. They are deducted from his pay before calculating his income tax liabilities
   2. They are based on the tax year
   3. He no longer has to pay them, although his employer will
   4. Neither Jack nor his employer are required to pay them

4. Which features would you normally associate with a defined benefit scheme pension? Tick all that apply.
   1. Lump sum death benefits.
   2. Pension based on a percentage of salary.
   3. Guaranteed income for life.
   4. Prospect of investment growth.

5. Where a business is considering protection for one of its employees, the need will depend on:
   1. the individual employee’s role in the business
   2. the individual employee’s age
   3. the individual employee’s salary
   4. the individual employee’s length of service

Answers

1. D – See R01 Study Text, Chp 6
   Grab our taster mock exam paper for CII R01. Click here to download.

2. C – See R02 Study Text, Chp 4
   Grab our taster mock exam paper for CII R02. Click here to download.

3. C – See R03 Study Text, Chp 2
   Grab our taster mock exam paper for CII R03. Click here to download.

4. ABC – See R04 Study Text, Chp 6:1
   Grab our taster mock exam paper for CII R04. Click here to download.

5. A – See R05 Study Text, Chp 2
   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?

If you found this quiz useful for your CII exam revision, please do share it with your colleagues.