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CeMap 1 > Cemap 1 Unit 1 Katie > Flashcards

Cemap 1 Unit 1 Katie Flashcards

Wrong answers in mocks

1
Q

What is the primary interest rate benchmark in sterling markets changing to in 2021?

The base rate
London interbank offered rate
The sterling overnight average index
The banking rate

A

The sterling overnight average index

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2
Q

How often does the monetary policy Committee meet to set interest rates

At least Monthly
At least Bi monthly
At least 8 months per year
Yearly

A

At least 8 months per year

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3
Q

A company raising funds from the general public through share issue is an example of what?

Aggregation
Maturity transformation
Disintermediation
Risk transformation

A

Disintermediation

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4
Q 
Technically the recession is 2 consecutive quarters of negative growth as measured by?
CPI
RPI
GDP
MPC
A

GDP

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5
Q

A persons domicile is relevant mainly for which tax or taxes?

IHT
CGT and Income tax
IHT and CGT
IHT CGT and Income tax

A

IHT

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6
Q

A persons residence is relevant for which tax or taxes?

IHT
CGT and Income tax
IHT and CGT
IHT CGT and Income tax

A

CGT and Income tax

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7
Q

You are deemed domicile in the UK if you have lived here for how many years out of 20?

A

15

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8
Q

If you spend more than 183 days a tax year in the UK then the uk is classed as your ….?

A

Residence

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9
Q

Which of the following is NOT liable for capital gains tax?
Profit made from sale of shares in a bank
Profit made from sale of GILTS
Profit made from sale of units in a unit trust
profit made from sale of holiday home

A

GILTS

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10
Q

in 2013/14 sean made a loss of £5k on an investment in 20/21 he made a gain of £9k which the following describes what will happen to the loss?

Losses cannot be carried forward

The loss must be offset against the gain even though the gain falls within CGT personal allowance

The loss does not have to be offset against the gain as gain is covered by PA but cannot
be carried forward more than one year

The loss does not have to be offset against the gain as gain is covered by PA but losses can be carried forward indefinitley

A

The loss does not have to be offset against the gain as gain is covered by PA but losses can be carried forward indefinitley

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11
Q

Which of the following is true about the liability for stamp duty reserve tax on the sale of shares worth more than £1000?

its paid by purchaser 0.5%
its paid by seller at 0.5%
its paid by purchaser 1.5%
its paid by seller at 1.5%

A

its paid by purchaser 1.5%

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12
Q

What is the gross Liability for additional rate tax payers on dividend income from an equity unit trust?

7.5%
10%
32.5%
38.1%

A

38.1%

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13
Q

Investment trusts are:

open ended investment companies
PLC’s
Mutual companies
Trusts

A

PLC’s

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14
Q 
Which of the following collective investment schemes is allowed to borrow money?
Unit Trusts
Investment Trusts
OEIC's
None
A

investment trusts

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15
Q

What is the maximum annual charge that can be applied to a stakeholder pension for the first ten years set up in june 2008

  1. 25%
  2. 5%
  3. 5%
  4. 5%
A

1.5%

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16
Q 
A family benefit policy is a type of:
general insurance
personal pension 
life assurance 
stakeholder pension
A

life assurance

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17
Q 
Which type of whole of life assurance could be best described as unit linked with a range of other benefits and insurance options 
low cost whole of life
universal whole of life
flexible whole of life
fixed term whole of life
A

universal whole of life

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18
Q

What can be defined as a traceable, fixed interest loan to a company?

A

corporate bond

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19
Q

Permanent interest bearing shares are issued by which type of company?

A

building societies

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20
Q

How do preference shares differ from ordinary?

A

pay out a fixed dividend which is paid before ordinary

no voting rights

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21
Q

a couple wants to contribute to personal pension scheme one earns 32K one earns nothing how much can they contribute yearly

A

32k + 3600

3600 is minimum max is 40k but its 100% of your earnings which ever is lower

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22
Q

what is a person who gives property to a trust known as?

trustee
beneficiary
settlor
testator

A

settlor

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23
Q 
A retrospective agreement by the principal to actions taken by the agent that exceeds the letters  authority is known as?
apparent authority 
ratification 
principal authority 
discretionary management
A

ratification

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24
Q

definition of ratification?

A

the action of signing or giving formal consent to a treaty, contract, or agreement, making it officially valid.

25
Q

Finish the sentence in regards to FCA operational objectives

to secure an appropriate level of…… for consumers

A

protection

26
Q

Finish the sentence in regards to FCA operational objectives

To protect and enhance the …. of the uk financial system

A

intergrity

27
Q

Finish the sentence in regards to FCA operational objectives

To promote effective …. in the interests of the consumer

A

competition

28
Q

how many banks globally have been defined to big to fail?

A

30

29
Q

What can be defined as the ease of speed with which an asset can be converted into cash?

A

Liquidity

30
Q

If the The financial ombudsman decisions to make an award after receiving a complaint regarding company is that company bound to abide by the ruling ?

A

NO but the matter can then proceed to the courts

31
Q

Who is your first port of call in complaints regarding pensions?

A

TPAS The pension Advisory Service then pension onbudsman

32
Q

the fit and proper test for approved person looks at a persons fitness and propriety to undertake the role under which three categories

A

Honesty and integrity
competence
Financial Soundness

33
Q

Who is responsible for keeping the register of last powers of attorney?

HMRC
The office of Public Guardian
The Home office
The lAw Society

A

The office of Public Guardian

34
Q

Which of the following is NOT on of the principles for senior management approved persons?
Act with due care and diligence
Ensure the business of the firm is controlled effectively
Ensure the business of the firm complies with the requirements and standards of the regulatory system
Ensure effective risk management procedures are in place

A

Ensure effective risk management procedures are in place

35
Q 
What is the price at which an investor buys units in a unit trust called?
the cancellation price
the purchase price 
the bid price 
the offer price
A

the offer price

36
Q 
what rate of VAT is charged on domestic heating?
0%
5%
9.5%
17.5%
A

5%

37
Q

Which of the following is true in respect of bankruptcy order?
Formalised by county court
formalised by high Court
it will usually remain in place for 24 months
it can be applied to debt over £2k

A

Formalised by county court

38
Q 
which of these would not come under the heading of senior management function?
Manager of lending department 
compliance oversight function 
chief executive
money laundering reporting officer
A

manger of lending department

39
Q 
what is the latest point a key feature document must be given in respect of life policy?
at the time of application completed
at time recommendations are made
before the sale is concluded
by the end of cancellation period
A

before the sale is concluded

40
Q

During anti money laundering training at a bank what would the training likely NOT cover?
the name of banks money laundering reporting officer
money laundering legislation
how to interview a suspected money launderer
when and how a customers identity needs to be established

A

how to interview a suspected money launderer

41
Q 
under general data protection regulations what is the general fee to be charged for a copy of information being held on you?
No fee
£10
£25
£50
A

no fee

42
Q

who hold the list of appropriate examinations that are required for investment advisers under training of competence and rules?

The PRA
OFQUAL
The financial & Legal skills Partnership
The department of schools children and families

A

The financial & Legal skills Partnership

43
Q

which of the following would not require the customers identify ti be established for money laundering prevention purposes

A lump sum 2500 euros in life assurance policy
a lump sum investment 9000 euros into a unit trust
a regular payment of 1500 euros in life assurance policy
a lump sum of 16000 euro into a deposit account

A

a lump sum investment 9000 euros into a unit trust

44
Q

Within the UK economy an ample of disintermediation would be:
Arrangement of a life assurance policy through an independent advisor
Purchase of securities through stockbroker
GILTS from debt management office

A

GILTS from debt management office

45
Q

Which of the following are the main components of government fiscal policy?

government spending, interest rates and revenue
government spending borrowing direct and indirect taxation
interest rates revenue and borrowing
government spending interest rates and money supply

A

government spending borrowing direct and indirect taxation

46
Q

the regulation of financial services in the UK is a five tier process which is the third?

European Legislation
Regulatory bodies
Arbitration schemes
Acts of parliament

A

Regulatory bodies

47
Q 
What is the threshold above which income tax is payable on redundancy payments?
20,000
29,900
30,000
35,000
A

30000

48
Q 
George is a basic rate tax payer. what is the maximum tax free interest available on his deposit account?
NIl 
500
1000
1500
A

1000

49
Q 
Jack brought an antique vase in 2016 and auctioned it later in the year gaining profit of 12,500. which of the following costs could he not offset against CGT?
Valuers fees on purchase
Repairs to vase
Auctioneers commission 
cost of improvements
A

cost of repairs

50
Q 
what rate if vat is charged on children's clothes?
Exempt 
Zero rated
5%
20%
A

zero rated

51
Q

Mr blacks share purchase transaction could not be accepted for registration because…
He was not a UK resident
The shares he was buying were listed on AIM
The stock transfer documents were not stamped by HMRC within the permitted time frame
The transaction was less than 10K

A

The stock transfer documents were not stamped by HMRC within the permitted time frame

52
Q

Martin brought 500 shares at £7.50 each what was the stamp duty reserve tax?

  1. 00
  2. 75
  3. 50
  4. 25
A

18.75 SDRT is 0.5%

53
Q 
Which of the following benefits is paid tax free?
Maternity Allowance 
Statutory Maternity Pay 
Carers Allowance 
Jobseekers Allowance
A

Maternity Allowance

54
Q

Statutory Sick pay is available for:

employees for 12months
the self employed for 28 weeks
employees for 28 weeks
the self employed for 12 weeks

A

employees for 28 weeks

55
Q

Why would a client be interested in the coupon of a gilt - edge security?
it gives and indication of expected income and capital growth
it indicates the amount of capital repaid on maturity
it indicates the possible gain over the issue price at the redemption date
it indicates the interest payable over the term

A

it indicates the interest payable over the term

56
Q 
Donald paid 13k for 10k treasury stock 8% 2021 what gross coupon does he receive every 6 months?
520
1040
800
400
A

400

57
Q 
CPD electronics Ltd share price stands at £10 and earnings per share is £0.50p the price earning ratio is:
5
10
20
25
A

20

58
Q

How are treasures bills issued?
Guaranteed interest with discount to par value
short term zero coupon at discount to par value
long term with redemption amount at par value
deep discount with redemption amount at par value

A

short term zero coupon at discount to par value

CeMap 1 (2 decks)

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