Friday Five – 3 August – 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.
- What are the categories of organisations who introduce business to a firm? Tick all that apply.
- Partial exempt firms
- Firms that are not FCA authorised
- Exempt firms
- Partial FCA authorised firms
- Firms that are regulated by a Designated Professional Body
- What portfolio(s) would you expect from an efficient frontier model?
- An optimal portfolio with the lowest level of risk
- A set of portfolios representing the maximum return for every given level of risk
- An optimal portfolio to produce the highest level of return
- A set of portfolios representing the minimum risk that can be achieved
- Which of the following can be an effective strategy for reducing a company director’s liability to national insurance contributions?
- Sacrificing salary to increase the amount the company pays to company pension schemes
- Giving up their company car
- Arranging for their salary to be paid in ad-hoc lump sums rather than on a monthly or weekly basis
- Increasing their contributions into a personal pension
- At age 80, Sidney dies, leaving behind a wife and child. Sidney had uncrystallised benefits. How can the fund pay out any lump sum death benefits?
- No LTA test needed and can pay out a lump sum subject to 45% tax charge.
- Benefit crystallisation event so LTA test needed with any excess taxed at 55%.
- No LTA test needed and lump sum is payable tax free if paid within 2 years.
- No LTA test needed and lump sum taxable at the recipient’s rate of tax.
- A mortgage is distinguished from an absolute assignment by a right known as the:
- law of reassignment
- equity of redemption
- repayment of security
- power of retention
- B C E – See R01 Study Text, Chp 7
Grab our taster mock exam paper for CII R01. Click here to download.
- B – See R02 Study Text, Chp 3
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.
- D – See R04 Study Text, Chp 2.2
Grab our taster mock exam paper for CII R04. Click here to download.
- B – 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?
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