Friday Five – 25 May – 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.
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.
- Which international organisation provides recommendations to the EU on money laundering?
- The Joint Money Laundering Steering Group
- The Financial Action Task Force
- The Fourth Money Laundering Directive
- The EU Money Laundering Organisation
- If interest is payable at more frequent intervals (than annually), how would the effective rate of interest be different to the nominal rate of interest?
- The effective rate reduces
- The nominal rate would be higher
- The effective rate would be higher
- There would be no difference
- Edward is a company director and is considering the best way of taking remuneration from his company. What might be a disadvantage for him of taking a low salary and high dividends?
- Dividends are not relevant earnings and so could restrict pension contributions
- Corporation tax would be payable at a higher rate as the salary is not being withdrawn from company profits
- A reduced salary would reduce any State pension entitlement in the future
- The dividend payment would be subject to a higher rate of National Insurance
- When the administrators of a defined benefit scheme calculate an early leaver transfer value, the process of converting the lump sum value of pension benefits at retirement to a capital value in today’s terms is known as:
- The usual limitation on the amount of benefit that can be paid from an individual income protection policy is that the total of all policies does not exceed:
- 50% of monthly gross earnings in the two years prior to incapacity
- 50% – 60% of average monthly gross earnings in the year prior to incapacity
- 75% – 80% of average monthly gross earnings in the year prior to incapacity
- 50% – 65% of monthly gross earnings in the six months prior to incapacity
- B – See R01 Study Text, Chp 4
Grab our taster mock exam paper for CII R01. Click here to download.
- C – See R02 Study Text, Chp 4
Grab our taster mock exam paper for CII R02. Click here to download.
- A – See R03 Study Text, Chp 11
Grab our taster mock exam paper for CII R03. Click here to download.
- A – See R04 Study Text, Chp 4
Grab our taster mock exam paper for CII R04. Click here to download.
- B – See R05 Study Text, Chp 6
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?
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