Friday Five – 3 November – 5 Questions in 5 Minutes
Last updated on September 25th, 2019 at 4:27 am
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 2017/18, examinable until 31 August 2018.
- Which of the following statements regarding bonds is true?
- Interest earned on a bond is lower than that earned from a bank
- Bonds allow private investors to borrow from a company in exchange for interest
- Bonds are in the form of high interest loans with no capital repayment
- Bonds allow companies to raise money without having to borrow from a bank
- Steven invested £7,500 in an account paying 4.5% interest. After 7 years how much would he have accumulated?
- £10,225
- £10,206
- £9,767
- £9,525
- Why might an offshore fund with reporting status be preferable for a UK investor than one without?
- Any gains on disposal are subject to normal CGT rules and taxed at 10% or 20%
- Investors can roll up gross income until they are liable for income tax at a lower rate
- Income can be accumulated in a low tax environment
- Tax is only payable on distribution of income or encashment
- Which of the following statements are correct regarding postponement under auto-enrolment? Tick all that apply.
- It allows the employer to defer the date on which it assesses a worker for a period of up to 6 months.
- The date to which the employer defers assessing a worker is known as the ‘deferral date’.
- If the employer’s staging date is the 1st October the latest deferral date they can chose is 1st January.
- The employer must issue the workers with individual ‘postponement notices’.
- Irene has taken out an income protection policy. If she becomes incapacitated and unable to work, when will her benefits be paid?
- After a deferred period chosen by her
- From day one of her claim
- After a deferred period stated by the insurer
- If she is incapacitated for a continuous period of 3 months or more
Answers
- D – See R01 Study Text, Chp 1
Grab our taster mock exam paper for CII R01. Click here to download.
- B – 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 10
Grab our taster mock exam paper for CII R03. Click here to download.
- BCD – See R04 Study Text, Chp 3
Grab our taster mock exam paper for CII R04. Click here to download.
- A – 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?
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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