Friday Five – 2 June – 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 2016/17, examinable by the CII until 31 August 2017.  They do not relate to tax year 2017/18 which is only examinable by the CII from 1 September 2017.

1. Damian has been found guilty of market abuse. What is the maximum criminal penalty for this offence?
   1. A fine limited to £10 million
   2. 5 years’ imprisonment
   3. An unlimited fine and 5 years’ imprisonment
   4. An unlimited fine or 7 years’ imprisonment

2. If a company’s share price was 225p and its earnings per share were 42.4p, what is the Price Earnings Ratio?
   1. 18.84
   2. 9.54
   3. 1.88
   4. 5.31

3. Fred and Nancy have a Child Trust Fund for their 11-year-old daughter as well as holding a Cash ISA and a Stocks and Shares ISA. They are looking around for better providers and have asked you for advice as to the type of transfer they can do. Which of the following would they be unable to do?
   1. The Child Trust Fund to a Cash ISA
   2. The Child Trust Fund to a Junior ISA
   3. The Stocks & Shares ISA to a Cash ISA
   4. The Cash ISA to another Cash ISA

4. In assessing her eligibility for State Pension Credit, Molly has declared savings of £14,000. This means that, on this information alone, she will:
   1. be unable to claim any Pension Credit.
   2. be assumed to have, from own sources, a weekly income of £8.
   3. be assumed to have, from own sources. a weekly income of £14
   4. be assumed to have, from own sources, a weekly income of £28.

5. If the flexibility to be able to move house in the future is important to someone taking out an equity release plan, what sort of plan should they avoid?
   1. Lifetime mortgage with interest roll up
   2. Drawdown mortgage
   3. Full Home Reversion Plan
   4. Capital and Interest Mortgage

Answers

1. D – See R01 Study Text, Chp 5:1
   Grab our taster mock exam paper for CII R01. Click here to download.

2. D – See R02 Study Text, Chp 1:2
   Grab our taster mock exam paper for CII R02. Click here to download.

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

4. B – See R04 Study Text, Chp 7
   Grab our taster mock exam paper for CII R04. Click here to download.

5. C – See ER1 Study Text, Chp 9
   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!)