Friday Five – 5 October – 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. Can a firm claim that their affairs have FCA approval?
   1. Yes, but only if the firm is authorised by the FCA
   2. Yes, but only for regulated activities and done so expressly
   3. No, except where required by the rules of the FCA
   4. Not under any circumstances

2. Which of the following is not an underlying assumption for the Capital Asset Pricing Model (CAPM)?
   1. Information is free and available to all investors
   2. All investors have identical holding periods
   3. The quantity of risky assets is limitless to include liquidity
   4. Not under any circumstances

3. Johnny recently sold an antique vase making a net chargeable gain of £10,000 after deducting the annual exempt amount and allowable losses. What rate of tax will he be charged if his total taxable income is £20,000?
   1. 28%
   2. 20%
   3. 18%
   4. 10%

4. Guaranteed Minimum Pension (GMP) benefits between 1978 and April 1988 for members reaching State pension age before 6 April 2016 were:
   1. fully inflation proofed, paid entirely by the State.
   2. fully inflation proofed, with the State paying any RPI in excess of 3%.
   3. fully inflation proofed, paid entirely by the Scheme.
   4. inflation proofed, with the scheme paying up to a maximum of 2.5%.

5. Carla aged 20 cares for her disabled mother who receives disability living allowance. She applied for carer’s allowance, but her claim was refused. This was because:
   1. Carla is under age 21
   2. Carla has net earnings of £75 per week
   3. Carla’s mother is receiving another state benefit
   4. Carla is on a full-time course at college

Answers

1. D – See R01 Study Text, Chp 5:1
   Grab our taster mock exam paper for CII R01. Click here to download.

2. B – See R02 Study Text, Chp 1:1
   Grab our taster mock exam paper for CII R02. Click here to download.

3. D – See R03 Study Text, Chp 3
   Grab our taster mock exam paper for CII R03. Click here to download.

4. B – See R04 Study Text, Chp 6:2
   Grab our taster mock exam paper for CII R04. Click here to download.

5. D – See R05 Study Text, Chp 3
   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!)