Friday Five – 4 January – 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 2018/19, examinable until 31 August 2019.

1. How many qualifying years are needed to receive the full new State pension?
   1. 35
   2. 36
   3. 38
   4. 40

2. Tom is a trustee of the Davies family Interest in Possession trust. What rate of income tax will he be liable for, as trustee, on savings income?
   1. 20%
   2. 37.5%
   3. 40%
   4. 45%

3. Your client has chosen fixed interest securities as a major component of their pension fund investment portfolio. Likely reasons for this could be that: Tick all that apply.
   1. All fixed interest securities provide a guarantee of capital at maturity and during their term.
   2. Annuity rates are generally backed by gilts.
   3. They offer a fixed rate of interest, (known as the coupon).
   4. All fixed interest securities have a redemption date.

4. Which of the following conditions is usually excluded from critical illness cover?
   1. Heart valve replacement
   2. Major organ transplant
   3. Temporary loss of speech
   4. Terminal illness

5. You are speaking with a young couple, Jess and Bob. They have indicated that their main priority is a return objective of ‘capital appreciation’. Which of the following characteristics is typical of this strategy?
   1. The clients are risk averse and unwilling to invest in the stock market.
   2. The clients are only thinking about short-term objectives.
   3. Growth is usually achieved from capital gains.
   4. The clients are only concerned with income in retirement.

Answers

1. A – See R01 Study Text, Chp 2
   Grab our taster mock exam paper for CII R01. Click here to download.

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

3. BC – See R04 Study Text, Chp 8
   Grab our taster mock exam paper for CII R04. Click here to download.

4. C – See R05 Study Text, Chp 7
   Grab our taster mock exam paper for CII R05. Click here to download.

5. C – See J10 Study Text, Chp 1
   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?

If you found this quiz useful for your CII exam revision, please do share it with your colleagues.