Friday Five – 22 December – 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. Under which of the following would it NOT be required to disclose your status?
   1. E-mail
   2. Fax
   3. Text message
   4. Letter

2. What is the difference between M0 and M4?
   1. M4 is a broader definition and includes bank/building society deposits that have been created through their lending activities
   2. M0 is a broader definition and includes deposits lodged by savers
   3. M4 is the more commonly quoted measure of money supply in the UK
   4. M4 reflects changes in the economic cycle, but M0 causes changes in the economic cycle

3. Which of the following would normally be included as a taxable benefit for an employee?
   1. Premiums on a group income protection scheme paid by the employer
   2. Childcare vouchers of £50 per week
   3. Accommodation supplied by the employer for a low rent
   4. A £3 weekly allowance for someone who works from home

4. Mary dies at age 56 before crystallisation of her only pension fund. At the date of death, her SSAS value was £750,000 and she also had £1m of pension term assurance. If her dependants took all benefits in the form of a lump sum benefit, the lifetime allowance charge (if any) would be:
   1. £0.
   2. £125,000.
   3. £275,000.
   4. £412,500

5. Which of the following describes a bottom-up active management style which aims to capitalise on the continuance of existing trends in the market?
   1. Momentum
   2. Growth At A Reasonable Price
   3. Contrarianism
   4. Value

Answers

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

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

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

4. D – See R04 Study Text, Chp 2:2
   Grab our taster mock exam paper for CII R04. Click here to download.

5. A – See J12 Study Text, Chp 4
   Grab our taster mock exam paper for CII J12. 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!)