Friday Five – 22 January – 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.
These questions relate to examinable tax year 2015/16, examinable until 31 August 2016.
- Which of the following key stakeholder groups might not be essential in embedding an ethical culture at sector and firm level?
- How can ‘portfolio drift’ be mitigated?
- By periodically rebalancing the investment portfolio
- By encashing the highest performing assets
- By encashing the lowest performing assets
- By encashing 10% of the highest and lowest performers
- With regard to taxation, trustees of an interest in possession trust where the asset is rental property should be aware that:
- they will only ever be charged to basic rate tax on the rental income
- a higher rate taxpaying beneficiary will not owe any extra tax on rental income
- they are entitled to tax relief for the expenses they incur in managing the trust
- as trustees they will be entitled to a personal allowance
- Who, from the following list of applicants for an income protection policy is likely to be charged the highest premium?
- Derek, aged 45, with a deferred period of 13 weeks
- Chloe, aged 52, with a deferred period of 26 weeks
- Arthur, aged 47, with a deferred period of 8 weeks
- Julia, aged 48, with a deferred period of 4 weeks
- An investor buys £2,000 worth of 6% Treasury Stock 2016 priced at £106.16. What is the flat yield?
- D – See R01 Study Text, Chp 10 Section D1
Grab our taster mock exam paper for CII R01. Click here to download.
- A – See J10 Study Text, Chp 4 Section A2
Grab our taster mock exam paper for CII J10. Click here to download.
- A – See R03 Study Text, Chp 1 Section K4A
Grab our taster mock exam paper for CII R03. Click here to download.
- D – See R05 Study Text, Chp 6 Section D1
Grab our taster mock exam paper for CII R05. Click here to download.
- D – See J12 Study Text, Chp 2 Section G2A
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!)