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Friday Five – 8 April – 5 Questions in 5 Minutes

Friday Five – 8 April – 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. Which of the following does the Government use to fund its borrowing?
    1. Bank deposits and fixed interest investments
    2. Fixed interest investments and National Savings and Investments
    3. National Savings and Investments and Corporate Bonds
    4. Corporate Bonds and bank deposits
  1. What can portfolio managers exercise in order to achieve desired results? Tick all that apply
    1. Asset allocation
    2. Stock selection
    3. Changing benchmarks
    4. Risk
  1. Charles made a gross pension contribution of £15,000 in 2013/14 and £20,000 in 2014/15, (he didn’t make any contribution in 2012/13 as he was not a member of any pension scheme). What is the maximum pension contribution he can make in 2015/16?
    1. £40,000
    2. £95,000
    3. £105,000
    4. £155,000
  1. Which of the following statements are true regarding Lifestyle funds? Tick all that apply
    1. Switching begins between 10 and 15 years before the selected retirement age.
    2. Including gilts within the fund provides a hedge against falling annuity rates.
    3. The individual will need to remember to switch their funds as retirement approaches.
    4. Switching occurs at pre-set times and does not allow for market conditions.
    5. The investment mix is moved away from equities and into fixed interest and cash.
  1. Olivia has taken out a mortgage secured against her property. It has been set up so she does not need to make any capital repayments and when the property is eventually sold, the loan will be repaid together with a payment based on the percentage increase in the property value. What type of plan does Olivia have?
    1. Equity Share Mortgage
    2. Home Reversion Plan
    3. Shared Appreciation Mortgage
    4. Home Income Plan

 

Answers

  1. B – See R01 Study Text, Chp 1, Section A2
    Grab our taster mock exam paper for CII R01. Click here to download.

 

  1. ABD – See R02 Study Text, Chp 9, Section C
    Grab our taster mock exam paper for CII R02. Click here to download.

 

  1. B – See R03 Study Text, Chp 1, Section F1
    Grab our taster mock exam paper for CII R03. Click here to download.

 

  1. BDE – See R04 Study Text, Chp 8, Section B5A
    Grab our taster mock exam paper for CII R04. Click here to download.

 

  1. C – See ER1 Study Text, Chp 1, Section B3
    Grab our taster mock exam paper for CII ER1. 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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