Friday Five – 2 March – 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 2017/18, examinable until 31 August 2018.

1. Regulated larger firms must maintain resources to cover risks and must carry out risk assessment and stress testing scenarios as required by the:
   1. Fixed overheads Directive
   2. Financial resources Directive
   3. Capital Adequacy Directive
   4. Capital Requirements Directive

2. Which of the following individuals would be entitled to National Insurance credits? Tick all that apply.
   1. Harriet, aged 19, who is on an approved full-time training course
   2. Charlotte who earns £140 a week
   3. Matt who is taking statutory paternity leave
   4. Archie, aged 55, who has retired
   5. Gemma who has left work to consider re-training

3. Equities might be suitable as part of pension investment because they: Tick all that apply.
   1. offer the possibility of a positive real return.
   2. are most suited to longer term investment horizons.
   3. offer the potential of outperforming cash and fixed interest.
   4. offer a guaranteed level of income which is particularly useful in drawdown.

4. For which type of protection policy could future risk be a factor?
   1. All contracts for longer than 10 years
   2. Contracts with reviewable premiums
   3. Contracts with add on benefits
   4. All contracts where the insured is over age 40 at the outset

5. 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

Answers

1. D – See R01 Study Text, Chp 5:2
   Grab our taster mock exam paper for CII R01. Click here to download.

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

3. ABC – See R04 Study Text, Chp 8
   Grab our taster mock exam paper for CII R04. Click here to download.

4. B – See R05 Study Text, Chp 10.1
   Grab our taster mock exam paper for CII R05. Click here to download.

5. D – See J10 Study Text, Chp 12
   Grab our taster mock exam paper for CII J10. 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!)