Friday Five – 30 August – 5 Questions in 5 Minutes
Last updated on September 25th, 2019 at 4:13 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.
IMPORTANT! These questions relate to examinable tax year 2018/19, examinable by the CII until 31 August 2019. They do not relate to tax year 2019/20 which is only examinable by the CII from 1 September 2019.
- If a provider gives any benefits or inducements to an intermediary how long must they keep records for?
- 7 years
- 6 years
- 5 years
- 3 years
- If a bond’s redemption yield is higher than its interest yield, what does this indicate?
- The bond has just made an interest payment
- There will be a capital gain if held till maturity
- The issuer has a strong credit rating
- The bond’s proceeds will be tax-free
- Maxine is considering whether to invest in Friendly Society policies for each of her 3 children and has asked you to supply some information. You tell her that: Tick all that apply.
- The maximum monthly premium is £25
- Premiums can only be paid monthly
- The funds are free of UK tax on income and gains
- She can only have one policy per family
- Alan used his £300,000 pension fund to buy a pension protected annuity. The annuity was £18,000 pa payable annually in arrears. Alan died aged 72, having received 12 payments to that point. The annuity protection lump sum his dependants would receive is:
- Carol and Steven have successfully applied for a closed bridging loan. This is most likely to be because:
- they have found a buyer for their own home and accepted their offer
- they have not put their own home on the market yet
- they have exchanged contracts on the sale of their existing property
- they have 20% equity in their existing property
- C – See R01 Study Text, Chp 5:2
Grab our taster mock exam paper for CII R01. Click here to download.
- B – See R02 Study Text, Chp 1:1
Grab our taster mock exam paper for CII R02. Click here to download.
- AC – See R03 Study Text, Chp 10
Grab our taster mock exam paper for CII R03. Click here to download.
- B – See R04 Study Text, Chp 6:1
Grab our taster mock exam paper for CII R04. Click here to download.
- C – See R07 Study Text, Chp 6
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?
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