Friday Five – 9 December – 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 2016/17, examinable until 31 August 2017.

1. Who carries the compliance responsibility for an appointed representative?
   1. The individual carries their own responsibility
   2. The FCA
   3. The firm’s principal
   4. The introducer

2. Phil is buying a residential property for £275,000 and has agreed with the seller that this includes £5,000 for carpets and curtains. How much Stamp Duty Land Tax is payable by Phil?
   1. £3,500
   2. £3,750
   3. £8,100
   4. £8,250

3. Which of the following statements are true regarding critical yield? Tick all that apply.
   1. There is no explicit regulatory requirement to produce critical yields on a drawdown illustration.
   2. Type A critical yield is the growth rate needed to provide an income equal to that under an equivalent immediate annuity.
   3. Type B illustrations must be accompanied by a type A illustration.
   4. Type B illustrations must show annuity purchase at ages 70 and 75

4. A key concept of MPT is the efficient frontier, which describes the relationship between the return that can be expected from a portfolio given its risk. Which of the following is regarded as a limitation of the Efficient Frontier Model?
   1. It assumes standard deviation is the correct measure of risk
   2. It assumes that the underlying portfolios are actively managed
   3. It does not take account of risk
   4. It does not take account of portfolio returns

5. What is the current standard rate of NHS funded nursing care for self-funded residents in care homes in England?
   1. £78.00 per week
   2. £100.00 per week
   3. £112.00 per week
   4. £148.01 per week

Answers

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

2. A – See R03 Study Text, Chp 7
   Grab our taster mock exam paper for CII R03. Click here to download.

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

4. A – See J10 Study Text, Chp 8
   Grab our taster mock exam paper for CII J10. Click here to download.

5. C – See CF8 Study Text, Chp 2
   Grab our taster mock exam paper for CII CF8. 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!)