Friday Five – 21 February – 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 2019/20, examinable until 31 August 2020.

1. A discretionary portfolio management service is where:
   1. an investment bank manages a client’s portfolio information confidentially
   2. specialist investment managers make suggestions to the client regarding their investment portfolio for the client to then make the decisions
   3. a specialist investment portfolio management service is offered to selected clients
   4. specialist investment managers make the investment decisions to meet the client’s investment objectives

2. What does a country’s ‘real exchange rate’ measure?
   1. The price at which two currencies trade on the foreign exchange markets
   2. The price of domestic goods relative to foreign prices taking into account the exchange rate
   3. A country’s competitiveness
   4. The effective exchange rates between countries’ currencies

3. With regard to taxation, trustees of an interest in possession trust where the asset is a rental property should be aware that:
   1. they will only ever be charged to basic rate tax on the rental income
   2. a higher rate taxpaying beneficiary will not owe any extra tax on rental income
   3. they are entitled to tax relief for the expenses they incur in managing the trust
   4. as trustees, they will be entitled to a personal allowance

4. To be a lifetime annuity HMRC requires that the annuity must be:
   1. payable for the member’s life.
   2. purchased from a list of HMRC approved annuity providers.
   3. paid at least once a year in advance.
   4. capable of assignment and surrender in any circumstances.

5. A mortgage is distinguished from an absolute assignment by a right known as the:
   1. law of reassignment
   2. equity of redemption
   3. repayment of security
   4. power of retention

Answers

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

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

3. A – See R03 Study Text, Chp 1
   Grab our taster mock exam paper for CII R03. Click here to download.

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

5. B – See R05 Study Text, Chp 4
   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?

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