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Friday Five – 27 November – 5 Questions in 5 Minutes

Friday Five – 27 November – 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 2015/16, examinable until 31 August 2016.

  1. What is the minimum frequency a firm should test its capital adequacy?
    1. Every 3 years
    2. Every 2 years
    3. Every year
    4. Every 6 months
  1. A portfolio was worth £15,000 at the start of the year and £18,000 at the end of the year. £2,500 was invested at the end of June and £1,750 was withdrawn at the end of September. What is the Money Weighted rate of return?
    1. 23.72%
    2. 14.23%
    3. 19.48%
    4. 11.69%
  1. If Pauline incurred a chargeable gain on 4th May 2015, when would the CGT liability have to be paid?
    1. 31st January 2017
    2. 31st January 2016
    3. 30th October 2016
    4. 30th October 2015
  1. To be a lifetime annuity HMRC requires that the annuity must be:
    1. Payable for the member’s life.
    2. Purchased from a list of HMRC approved annuity providers.
    3. Be paid at least once a year in advance.
    4. Capable of assignment and surrender in any circumstances.
  1. Brian and Fiona wish to raise cash on their home using a lifetime mortgage. Which of the following should they be aware of?
    1. The younger of them must be at least 65
    2. Their monthly payments will be based on a fixed rate
    3. They may be able to drawdown periodic lump sums
    4. The younger they are the higher the loan will be

 

Answers

  1. C – See R01 Study Text, Chp 5:1 Section E2
    Grab our taster mock exam paper for CII R01. Click here to download.

 

  1. B – See R02 Study Text, Chp 9 Section B1A
    Grab our taster mock exam paper for CII R02. Click here to download.

 

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

 

  1. A – See R04 Study Text, Chp 6:1 Section C2A
    Grab our taster mock exam paper for CII R04. Click here to download.

 

  1. C – See R07 Study Text, Chp 6 Section H1
    Grab our taster mock exam paper for CII R07. 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!)

 

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