Nearly 1 million free-resource-downloads and-counting
Friday Five – 24 July – 5 Questions in 5 Minutes

Friday Five – 24 July – 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 2019/20, examinable by the CII until 31 August 2020. They do not relate to tax year 2020/21 which is only examinable by the CII from 1 September 2020.

  1. Why does the FCA have rules regarding inducements under COBS 2?
    1. To ensure all offers or inducements are correctly recorded
    2. To ensure all intermediaries receive the same inducements
    3. To ensure intermediaries are not swayed by any incentives
    4. To ensure all life offices are aware what their competitors are offering
  1. Davina took a loan that charged interest at a rate of 15% a year on a monthly basis. What is the annual percentage rate (APR)?
    1. 18.75%
    2. 16.57%
    3. 15%
    4. 16.08%
  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. State Pensions are funded on a ‘pay as you go’ basis. What does this mean?
    1. Revenue raised from income tax is used to pay for the State pensions of today.
    2. The current working population pay into their future National Employment Savings Trust (NEST) benefits.
    3. National insurance contributions of the current working population pay for State pensions of today.
    4. Revenue raised from all the forms of direct taxation is used to pay for State pensions of today.
  1. Arlene has taken out a unit-linked whole of life assurance policy on a standard cover basis. In which of the following situations would the premiums need to be increased?
    1. If her state of health changed
    2. If the unit prices fall by more than 1.0% over a six-month period
    3. Every ten years in line with her increased age
    4. If the underlying fund did not meet a pre-determined rate of return each year

 

Answers

  1. C – See R01 Study Text, Chp 5:2
    Grab our taster mock exam paper for CII R01. Click here to download.
  1. D – See R02 Study Text, Chp 4
    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. C – See R04 Study Text, Chp 1
    Grab our taster mock exam paper for CII R04 Click here to download.
  1. D – 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.

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.