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Friday Five – 21 June – 5 Questions in 5 Minutes

Friday Five – 21 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 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. How do sale and rent back schemes work?
    1. The client sells their home then obtains an agreement to remain there under an assured short hold tenancy for a set period
    2. It is a scheme designed to match clients who can’t sell with potential new rental tenants
    3. The scheme allows clients to rent their houses and raise a mortgage to purchase a new home
    4. It is a scheme designed for purchasers with insufficient deposit, they can rent for a set period before purchasing
  1. Simon is a preference share holder with Hayden PLC. In the event of Hayden PLC going into liquidation where would he rank?
    1. Ahead of ordinary shareholders and other creditors
    2. After ordinary shareholders but ahead of other creditors
    3. Ahead of ordinary shareholders but after other creditors
    4. After ordinary shareholders and other creditors
  1. Which of the following statements regarding Stamp Duty on documents transferring share ownership is true? Tick all that apply.
    1. The rate is 0.5% of the purchase price
    2. Stamp duty is paid by the seller
    3. Stamp duty is paid by the purchaser
    4. The purchaser is responsible for paying the stamp duty to HMRC
    5. Stamp duty paid can be taken into account for CGT calculations
  1. Which of the following is a minimum standard on a recently established Stakeholder pension?
    1. The maximum initial charge is 1.5%.
    2. The scheme must accept transfer payments from another pension source.
    3. Transfer charges, out of the scheme, must not be more than 10%.
    4. The minimum permitted contribution cannot be higher than £25 net.
  1. Which of the following statements CORRECTLY defines the pure or net premium calculated for life assurance policies by actuaries from mortality tables?
    1. The premium required just to meet the claims of those who die during the year insurance
    2. The actual premium that will be paid by the policyholder
    3. The premium for all policyholders in good health
    4. The premium required to meet claims each year including an assumed interest rate of 5%

 

Answers

  1. A – See R01 Study Text, Chp 5:2
    Grab our taster mock exam paper for CII R01. Click here to download.
  1. C – See R02 Study Text, Chp 1:2
    Grab our taster mock exam paper for CII R02. Click here to download.
  1. ACE – See R03 Study Text, Chp 7
    Grab our taster mock exam paper for CII R03. Click here to download.
  1. B – See R04 Study Text, Chp 5
    Grab our taster mock exam paper for CII R04. Click here to download.
  1. A – 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?

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

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