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Friday Five – 29 April – 5 Questions in 5 Minutes

Friday Five – 29 April – 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. Which international organisation provides recommendations to the EU on money laundering?
    1. The Joint Money Laundering Steering Group
    2. The Financial Action Task Force
    3. The Third Money Laundering Directive
    4. The EU Money Laundering Organisation
  1. Why would a cash deposit be suitable as part of a pension investment?
    1. To provide income in the early years from a pension arrangement being used for income withdrawal
    2. In event of falling interest rates, cash deposits are preferable to fixed interest investments
    3. To offer outperformance of other asset classes over the longer term
    4. Cash deposits need to be held for the long-term in order to fund the tax-free lump sum at retirement
  1. Majestic plc pays a net dividend of £270 each to two brothers, Jason and Miles. Jason is a higher rate taxpayer and Miles is an additional rate taxpayer. Which of the following is correct regarding their additional income tax liabilities?
    1. Jason will pay an extra 30%
    2. Miles will pay an extra 35%
    3. Jason has an additional liability of £67.50
    4. Miles has an additional liability of £101.25
  1. Norman is due to retire in August 2015, aged 65, having taken no previous pension benefits. Total pension benefits are worth £1.65 million. If he takes any excess over the lifetime allowance as an income; how much tax will be charged?
    1. £37,500.
    2. £82,500.
    3. £100,000.
    4. £220,000.
  1. Which is used to compare the performance of one fund with manager with another?
    1. Money weighted rate of return
    2. Time weighted rate of return
    3. Stochastic Modelling
    4. The Relative Return

 

Answers

  1. B – See R01 Study Text, Chp 4, Section C5
    Grab our taster mock exam paper for CII R01. Click here to download.

 

  1. A – See R02 Study Text, Chp 6:2, Section O1
    Grab our taster mock exam paper for CII R02. Click here to download.

 

  1. C – See R03 Study Text, Chp 9, Section B1A
    Grab our taster mock exam paper for CII R03. Click here to download.

 

  1. C – See R04 Study Text, Chp 2.1, Section C1
    Grab our taster mock exam paper for CII R04. Click here to download.

 

  1. B – See J10 Study Text, Chp 9, Section B3B
    Grab our taster mock exam paper for CII J10. 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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