CEMAP unit 1 mock 3

50問 • 1年前

問題一覧

which one of the following social security benefits is NOT tax free?

statutory maturity pay

the profits of a sole trader are subject to which class of national insurance contributions?

class 4

Jeremy has capital losses that exceed gains made in the current tax year. what option, if any, does he have in relation to residual losses?

carry them forward to future years

Doris and Fred are entitled to receive the married couple’s income tax allowance. Why is this?

Doris was born in 1936 and Fred 2 years earlier

Bernard received a share dividend cheque for £4,500 in may 2022. if he was a higher rate taxpayer, how much income tax must he pay?

£843.75

May recently sold some shares and made a taxable gain of £13,200. If her taxable income for this year is £15,000, how much capital gains tax will she be required to pay?

£1,320

which one of the following business does NOT have exemption from VAT in its supplies?

Accountants

two newly appointed trustees have been advised that their CGT allowance will be 100% of the standard allowance rather than 50% because:

they act as trustees for a mentally disabled person

a qualifying life policy is maturing and the owner has been advised that capital gains tax will apply to the proceeds. this confirms that:

ownership has changed hands

in terms of the individuals domiciled in the UK, which one of the following is true in relation to IHT

the tax applies potentially to all their assets in whichever country it is held

in calculating a firms liability to value added tax (VAT), taxable turnover is defined as the:

total value of all taxable supplies made in the UK in the course of business

on which one of the following savings products is interest paid gross but is potentially subject to income tax?

income bonds

which of the following statements is correct in respect of a unit trust?

any gain made on the sale of units by an investor may be liable to capital gains tax

which organisation is responsible for the financial stability of banks and building societies?

the prudential regulatory authority

Jane a higher rate tax payer, has a fixed interest unit trust. if she receives gross income from this investment of £2,000 in this tax year, how much income tax, taking into account her personal savings allowance, will she be liable for assuming she has no other investments?

£600

which of the following statements in respect of the eligibility rules for ISAs is correct?

the minimum age to access the equities element of an ISA is 18

which of the following does the government issue?

Gilt-edged securities

a right to buy shares at a specified price by a specified date is a:

warrant

over the longer term what risk is normally associated with deposit-based investments?

the real value of capital may be eroded due to the effects of inflation

what is generally believed to be the relationship between investment risk and investment return

the higher the risk, the higher the potential reward

Greg decided to invest in cumulative preference shares as he wanted to ensure

some certainty regarding future dividend payment

William is a higher rate tax payer but his wife, Mary, has NO income at all. William has £60,000 in a high interest bank account. Which one of the following approaches would NOT reduce their overall tax bill?

invest some of the money into gilts in Williams name

which one of the following statements is TRUE with regard to direct share investments?

Dividends are potentially subject to income tax and gains are potentially subject to capital gains tax

which of the following statements concerning preference shares is false?

a fixed level of annual dividend income will always be recieved by a shareholder

Nancy and Ron are married and want to set up a life assurance policy that will pay their potential inheritance tax liability. Which type of policy would be the most suitable?

joint life second death

which one of the following statements in respect of a unit linked endowment policy is correct?

the appropriate level of life cover is funded by encashing units on a monthly basis

which of the following is one way in which a repayment mortgage differs fundamentally from a personal pension mortgage?

provided monthly repayments are made on time, the loan is guaranteed to be repaid in full at the end of the term

which type of mortgage scheme would help someone on a low income to become an owner occupier?

shared ownership

at what rate is tax relief initially applied to contributions made to a personal pension plan?

basic rate only regardless of their income

which one of the following in relation to stakeholder pensions is correct?

there must not be any entry or exit charges

if Kim and Chris opt for a joint repayment mortgage, the most suitable way to ensure that the loan will be repaid if one of them dies is by:

taking out joint life decreasing term assurance

which type(s) of policy if any are used by governments to achieve their long term economic objectives?

monetary and fiscal

what is gross domestic product? A measure of the value of:

goods and services within a country over a specified period of time

how can a bank involved in wholesale banking raise money quickly in order to finance business activities?

from the interbank market

the regulatory framework for the financial services industry in the UK is a five tier process. Which one of the following bodies has taken over the activities in the third tier?

the financial conduct authority

Julian wishes to make sure that he can meet all his essential outgoings if he is unable to work due to medium or long-term illness. Which of the following insurance products would be most suitable?

income protection

which of the following statements in respect of term assurance is correct?

a decreasing term assurance policy will pay benefits only if the insured dies within the policy term

micheal keeps £20,000 cash in his home. after 5 years it will always be able to purchase less:

in local shops

which of the following does not need to be included when recommending a product to a client?

irrelevant details which fall outside the interest of the client

a relationship built between a financial advisor and a customer should be built upon mutual:

trust

which one of the following would normally be regarded as the priority financial need for an individual who has surplus cash for the first time?

an Emergancy fund

which ONE of the following could be described as “proactive servicing”?

a telephone call to a client to arrange a pre agreed review following a salary increase

The main advantage of writing a life assurance policy in trust is to:

ring fence the proceeds outside the individuals estate

what requirement rests on a discharged bankrupt when applying for a mortgage?

to disclose the previous bankruptcy to the lender

when an individual dies intestate, leaving a spouse, children and an estate valued at £110,000, which one of the following applies?

the entire estate passes to the spouse

which of these methods is NOT a recognised way of providing “partnership protection?

back to back plan

which ONE of the following items of property would be referred to as personalty?

a collection of vintage wines

which one of the following is a definition of an attorney?

a person who is given the authority to act on behalf of another person

one of the financial restrictions placed on undischarged bankrupts is that:

they are only able to borrow nominal amounts of money

despite his recent marriage to Katrina, johns existing will has remained in force. why is this?

the will was written with the wedding in mind

CEMAP unit 1 mock 1

CEMAP unit 1 mock 1

CEMAP unit 1 mock 2

CEMAP unit 1 mock 2

CEMAP unit 2 mock 1

CEMAP unit 2 mock 1

CEMAP unit 2 mock 2

CEMAP unit 2 mock 2

CEMAP unit 2 mock 3

CEMAP unit 2 mock 3

問題一覧

which one of the following social security benefits is NOT tax free?

statutory maturity pay

the profits of a sole trader are subject to which class of national insurance contributions?

class 4

Jeremy has capital losses that exceed gains made in the current tax year. what option, if any, does he have in relation to residual losses?

carry them forward to future years

Doris and Fred are entitled to receive the married couple’s income tax allowance. Why is this?

Doris was born in 1936 and Fred 2 years earlier

Bernard received a share dividend cheque for £4,500 in may 2022. if he was a higher rate taxpayer, how much income tax must he pay?

£843.75

May recently sold some shares and made a taxable gain of £13,200. If her taxable income for this year is £15,000, how much capital gains tax will she be required to pay?

£1,320

which one of the following business does NOT have exemption from VAT in its supplies?

Accountants

two newly appointed trustees have been advised that their CGT allowance will be 100% of the standard allowance rather than 50% because:

they act as trustees for a mentally disabled person

a qualifying life policy is maturing and the owner has been advised that capital gains tax will apply to the proceeds. this confirms that:

ownership has changed hands

in terms of the individuals domiciled in the UK, which one of the following is true in relation to IHT

the tax applies potentially to all their assets in whichever country it is held

in calculating a firms liability to value added tax (VAT), taxable turnover is defined as the:

total value of all taxable supplies made in the UK in the course of business

on which one of the following savings products is interest paid gross but is potentially subject to income tax?

income bonds

which of the following statements is correct in respect of a unit trust?

any gain made on the sale of units by an investor may be liable to capital gains tax

which organisation is responsible for the financial stability of banks and building societies?

the prudential regulatory authority

£600

which of the following statements in respect of the eligibility rules for ISAs is correct?

the minimum age to access the equities element of an ISA is 18

which of the following does the government issue?

Gilt-edged securities

a right to buy shares at a specified price by a specified date is a:

warrant

over the longer term what risk is normally associated with deposit-based investments?

the real value of capital may be eroded due to the effects of inflation

what is generally believed to be the relationship between investment risk and investment return

the higher the risk, the higher the potential reward

Greg decided to invest in cumulative preference shares as he wanted to ensure

some certainty regarding future dividend payment

invest some of the money into gilts in Williams name

which one of the following statements is TRUE with regard to direct share investments?

Dividends are potentially subject to income tax and gains are potentially subject to capital gains tax

which of the following statements concerning preference shares is false?

a fixed level of annual dividend income will always be recieved by a shareholder

Nancy and Ron are married and want to set up a life assurance policy that will pay their potential inheritance tax liability. Which type of policy would be the most suitable?

joint life second death

which one of the following statements in respect of a unit linked endowment policy is correct?

the appropriate level of life cover is funded by encashing units on a monthly basis

which of the following is one way in which a repayment mortgage differs fundamentally from a personal pension mortgage?

provided monthly repayments are made on time, the loan is guaranteed to be repaid in full at the end of the term

which type of mortgage scheme would help someone on a low income to become an owner occupier?

shared ownership

at what rate is tax relief initially applied to contributions made to a personal pension plan?

basic rate only regardless of their income

which one of the following in relation to stakeholder pensions is correct?

there must not be any entry or exit charges

if Kim and Chris opt for a joint repayment mortgage, the most suitable way to ensure that the loan will be repaid if one of them dies is by:

taking out joint life decreasing term assurance

which type(s) of policy if any are used by governments to achieve their long term economic objectives?

monetary and fiscal

what is gross domestic product? A measure of the value of:

goods and services within a country over a specified period of time

how can a bank involved in wholesale banking raise money quickly in order to finance business activities?

from the interbank market

the regulatory framework for the financial services industry in the UK is a five tier process. Which one of the following bodies has taken over the activities in the third tier?

the financial conduct authority

Julian wishes to make sure that he can meet all his essential outgoings if he is unable to work due to medium or long-term illness. Which of the following insurance products would be most suitable?

income protection

which of the following statements in respect of term assurance is correct?

a decreasing term assurance policy will pay benefits only if the insured dies within the policy term

micheal keeps £20,000 cash in his home. after 5 years it will always be able to purchase less:

in local shops

which of the following does not need to be included when recommending a product to a client?

irrelevant details which fall outside the interest of the client

a relationship built between a financial advisor and a customer should be built upon mutual:

trust

which one of the following would normally be regarded as the priority financial need for an individual who has surplus cash for the first time?

an Emergancy fund

which ONE of the following could be described as “proactive servicing”?

a telephone call to a client to arrange a pre agreed review following a salary increase

The main advantage of writing a life assurance policy in trust is to:

ring fence the proceeds outside the individuals estate

what requirement rests on a discharged bankrupt when applying for a mortgage?

to disclose the previous bankruptcy to the lender

when an individual dies intestate, leaving a spouse, children and an estate valued at £110,000, which one of the following applies?

the entire estate passes to the spouse

which of these methods is NOT a recognised way of providing “partnership protection?

back to back plan

which ONE of the following items of property would be referred to as personalty?

a collection of vintage wines

which one of the following is a definition of an attorney?

a person who is given the authority to act on behalf of another person

one of the financial restrictions placed on undischarged bankrupts is that:

they are only able to borrow nominal amounts of money

despite his recent marriage to Katrina, johns existing will has remained in force. why is this?

the will was written with the wedding in mind