Nearly 1 million free-resource-downloads and-counting
Friday Five – 22 June – 5 Questions in 5 Minutes

Friday Five – 22 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 2017/18, examinable by the CII until 31 August 2018.  They do not relate to tax year 2018/19 which is only examinable by the CII from 1 September 2018.

  1. What are the alternatives for a company facing liquidation?
    1. Bankruptcy or winding the company up
    2. Administration or a voluntary arrangement
    3. Disqualification or removing the company from the Registrar of Companies
    4. Appoint a solvency practitioner or Official Receiver
  1. A Bond is trading below its par value, what might cause this?
    1. Interest rates have reduced sharply
    2. The coupon is below current interest rates
    3. The coupon is above current interest rates
    4. The issuer has a strong credit rating
  1. Tim has recently started a job with a company car and is concerned about the tax position. Which of the following would be taken into account when calculating the taxable benefit?
    1. Any discount offered by the car dealer
    2. Provision of a car phone
    3. The car’s level of C02 emissions
    4. The age of the car
  1. Jita wants to take a tax-free ‘pensions advice allowance’ from her SIPP. She should be aware that:
    1. the financial advice must be regarding her SIPP only.
    2. she can take £150 in a tax year subject to a maximum of three payments.
    3. she can take £500 each tax year until her selected retirement age.
    4. the payment must be paid directly to the financial adviser.
  1. Which of the following types of equity release products needs to take account of affordability?
    1. Home Reversion Plan
    2. Lifetime mortgage with interest payments
    3. Home Income Plan
    4. Lifetime mortgage with interest roll up

 

Answers

  1. B – See R01 Study Text, Chp 3
    Grab our taster mock exam paper for CII R01. Click here to download.

 

  1. B – See R02 Study Text, Chp 1:1
    Grab our taster mock exam paper for CII R02. Click here to download.

 

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

 

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

 

  1. B – See ER1 Study Text, Chp 2
    Grab our taster mock exam paper for CII ER1. 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!)

I've just answered this week's Friday Five CII exam questions - can you? #Fri5 Click To Tweet

 

Don't want to miss the Friday Five? Click here to sign up for email notification of new posts.