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Friday Five – 6 May – 5 Questions in 5 Minutes

Friday Five – 6 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.

Questions

These questions relate to examinable tax year 2015/16, examinable until 31 August 2016.

  1. Within the FCA handbook, what does “Threshold Conditions” refer to?
    1. The minimum conditions a firm must satisfy to retain permission to conduct investment business
    2. The minimum levels of business that needs to be produced in order for the firm to remain viable
    3. The minimum supervision levels required in order for the firm to operate
    4. The maximum levels of business a firm is able to write
  1. The UK’s balance of payments is split into which two sections?
    1. Visible and invisible trade
    2. Receipts and payments
    3. Current account and capital account
    4. Exchange and conversion of sterling into foreign currency
  1. Which of the following individuals has a potential Capital Gains Tax liability? Tick all that apply
    1. Susan lived in her home for 5 years before moving out 18 months prior to its sale
    2. Jim’s house was empty for 3 years while he was travelling although he lived there before he went away and came back to it on his return
    3. Peter and Paul are civil partners and have owned two homes for the past 3 years and now wish to claim exemptions on one property each
    4. Mark has owned his house for 10 years although only lived in it for 5 years
  1. Joyce is about to retire and take the benefits from her defined benefit arrangement, which she has been a member of since 2006. In payment, her benefits must increase by a minimum of:
    1. CPI to a maximum of 5%.
    2. CPI to a maximum of 2.5%.
    3. CPI to a maximum of 3%.
    4. CPI to a maximum of 1%.
  1. Following the Mortgage Market Review, who is responsible for assessing affordability of a mortgage loan?
    1. The intermediary
    2. The Customer
    3. The FCA
    4. The lender

 

Answers

  1. A – See R01 Study Text, Chp 5:2, Section F1A
    Grab our taster mock exam paper for CII R01. Click here to download.

 

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

 

  1. CD – See R03 Study Text, Chp 3, Section C5
    Grab our taster mock exam paper for CII R03. Click here to download.

 

  1. B – See R04 Study Text, Chp 4.1, Section C1A
    Grab our taster mock exam paper for CII R04. Click here to download.

 

  1. D – See R07 Study Text, Chp 1, Section A1B
    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?

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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