Friday Five – 4 May – 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 is the difference between gilts and corporate bonds?
- Gilts are guaranteed as they are government backed, but corporate bonds offer no guarantee
- Gilts are always bought and sold at their nominal rate, whereas corporate bonds are traded on the bond market so could be bought or sold for less than £100
- Gilts are loans to the government, whilst corporate bonds are loans to companies
- Corporate bonds pay interest to the investor, whilst gilts pay no interest
- Florence has recently become self-employed. She is aware that she will have to pay National Insurance contributions but wants to know how. You tell her that:
- Class 2 and class 4 are normally paid by monthly direct debit
- Class 2 is included with the income tax self-assessment and class 4 is normally paid by monthly direct debit
- Class 2 and class 4 are included with the income tax self-assessment
- Class 2 is normally paid by monthly direct debit and class 4 is included with the income tax self-assessment
- If Mary wishes to achieve a higher level of single-tier Pension by increasing her qualifying years she should consider paying which of the following National Insurance Contributions?
- Class 3A.
- Class 3.
- Class 2.
- Class 4.
- In relation to the State pension credit, an individual reaching State pension age on or after 6 April 2016 may normally be entitled to:
- The guarantee credit only
- The savings credit only
- Both the guarantee and the savings credit
- Neither the guarantee nor the savings credit
- Modern portfolio theory (MPT) categorises risk as being one of two types. The collapse of Equitable Life is an example of what type of risk?
- C – See R01 Study Text, Chp 2
Grab our taster mock exam paper for CII R01. Click here to download.
- C – See R03 Study Text, Chp 2
Grab our taster mock exam paper for CII R03. Click here to download.
- B – See R04 Study Text, Chp 7
Grab our taster mock exam paper for CII R04. Click here to download.
- A – See R05 Study Text, Chp 3
Grab our taster mock exam paper for CII R05. Click here to download.
- C – See J10 Study Text, Chp 7
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?
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