Friday Five – 2 December – 5 Questions in 5 Minutes
Last updated on September 25th, 2019 at 4:33 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.
Questions
These questions relate to examinable tax year 2016/17, examinable until 31 August 2017.
- Which of the following statements is correct regarding building societies?
- Building societies are required to pay dividends to their shareholders
- Building societies were originally set up to lend money to other banks
- Building societies are owned by their shareholders
- Building societies do not have shareholders to pay dividends to
- Steven invested £7,500 in an account paying 4.5% interest. After 7 years, how much would he have accumulated?
- £10,225
- £10,206
- £9,767
- £9,525
- Which of the following would be liable for National Insurance Contributions (NICs)?
- Paul who works as a part-time mechanic earning £120 per week, his 2nd job is a florist earning £80 per week and he also works some evenings delivering pizzas for which he earns £75 per week
- Stuart works for 2 separate companies, although there are some common directors between them, he is a builder for one company and works in the accounts department at the other. He earns £90 a week from each
- Steve is a skilled computer technician and works for 5 subsidiaries of an estate agent providing IT services for which he earns £100 a week from each
- Mark has two part-time jobs earning £95 and £130 per week each, they are separate companies with separate payrolls
- Why might an employer decide to provide death in service benefits through a separate insured scheme as opposed to through a defined benefit scheme?
- To maintain death in service benefits without draining the fund.
- To treat the death in service benefits as an allowable expense.
- If the employees were all below 45.
- As the defined benefit scheme is fairly large.
- Where a life assurance policy includes a critical illness benefit, which type of trust should be used?
- Split benefit trust
- Absolute trust
- Flexible trust
- Discretionary trust
Answers
- D – See R01 Study Text, Chp 1
Grab our taster mock exam paper for CII R01. Click here to download.
- B – See R02 Study Text, Chp 4
Grab our taster mock exam paper for CII R02. Click here to download.
- C – See R03 Study Text, Chp 2
Grab our taster mock exam paper for CII R03. Click here to download.
- A – See R04 Study Text, Chp 4
Grab our taster mock exam paper for CII R04. Click here to download.
- A – See R05 Study Text, Chp 7
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!)
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