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TDQ: Test Your Knowledge – QUESTIONS

29 August 2018

For Professional Paraplanner’s TDQ (Training, Development and Qualifications) series, we have teamed up with key support providers, such as Brand Financial Training, to provide our readers with the very best in training, development and exam support.

This series aims to provide you with valuable advice and guidance materials to help you achieve your training goals, perfect your exam techniques and test your knowledge of the financial services market.

The following 10 questions, which can also be found in our September 2018 issue, relate to examinable Tax year 18/19, examinable by the CII until 31 August 2019.

We will publish the answers tomorrow.

1. Under which of the following would it NOT be required to disclose your status?
A. E-mail
B. Fax
C.Text message

2. The UK’s balance of payments is split into which two sections?
A. Visible and invisible trade
B. Receipts and payments
C. Current account and capital account
D. Exchange and conversion of sterling into foreign currency

3. Edward is a company director and is considering the best way of taking remuneration from his company. What might be a disadvantage for him of taking a low salary and high dividends?
A. Dividends are not relevant earnings and so could restrict pension contributions
B. Corporation tax would be payable at a higher rate as the salary is not being withdrawn from company profits
C. A reduced salary would reduce any State pension entitlement in the future
D. The dividend payment would be subject to a higher rate of National Insurance

4. Once a bankruptcy order is made, who is appointed to administer the bankrupt’s estate?
A. Trustee in Bankruptcy.
B. Administrator.
C. Personal representative.
D. Legal executive.

5. The main advantage of using an own life policy in trust for share protection insurance is that:
A. Tax relief is available on the premiums
B. Only one policy is needed for each director
C. The proceeds are paid without any liability for corporation tax
D. Higher sums assured are available

6. The Efficient Market Hypothesis (EMH) was developed by Eugene Fama in the 1960s. He believed that:
A. security price movements are random and therefore predictable
B. it should be impossible to achieve returns in excess of average market returns consistently through stock selection or market timing
C. security prices reflect some available information and prices slowly adjust to new information
D. an investor can only obtain higher than average returns through the skill of buying low risk investments

7. A trade has been executed over the telephone by a member broker. When must the trade be reported to the exchange?
A. Within 1 minute of execution
B. Within 3 minutes of execution
C. At the end of automatic trading ie 4.30pm
D. By the time the LSE system finishes running ie 5.15pm

8. The provision of domiciliary long-term care is normally the responsibility of:
A. The Local Authority
B. National Health Service
C. Court of Protection
D. Registered Charities

9. Anna, aged 70, owns her own property and she wishes to retain full ownership. She would like to raise £15,000 for home improvements shortly and a further £10,000 next year to pay for a holiday with her family. Which equity release scheme would be most appropriate for her?
A. Home Income Plan
B. Home Reversion Plan
C. Drawdown mortgage
D. Interest only mortgage

10. Amy has telephoned her bank for mortgage advice. How is the initial disclosure requirement most likely to be met in the first instance?
A. Electronically
B. In writing
C. Orally
D. By post


Need help with your CII exams? For resources including mock exam papers, calculation workbooks, study notes, audio masterclass and e-learning visit Brand Financial Training where you can also download free taster versions.

Professional Paraplanner