The CII Financial Assess training package tests your knowledge of key financial topics
Question 1
Which three months are used to calculate average earnings growth for the triple lock?
A. April to June
B. July to September
C. June to August
D. May to July
Question 2
Which of these is not a requirement set out under the new FCA Consumer Duty?
A. Issuing an Insurance Product Information Document (IPID)
B. Making the process of cancelling a policy easier
C. Offering helpful and accessible customer support
D. Providing for the needs of vulnerable customers
Question 3
Which of the following would you expect to react most to changes in interest rates?
A. A holding of 5% Treasury Stock due to repay next year
B. A long dated gilt
C. A Treasury Bill
D. An index-linked gilt due to repay in three years' time
Question 4
A firm must provide client agreements to which types of client before transacting any investment business?
A. All clients
B. Professional clients only
C. Retail and professional clients
D. Retail clients only
Question 5
What is environmental, social and governance (ESG) investing?
A. A reflection of the ethical, moral or religious beliefs of fund managers
B. An investment strategy designed to maximise returns and minimise losses
C. A framework that refers to criteria that can be used to assess company practices
D. An investment that meets the rules of Islamic finance
Question 6
Which of these types of fund would you typically expect to exhibit the greatest risk?
A. Corporate bond fund
B. Global equity fund
C. Hedge fund
D. Money market fund
Question 7
The statutory duty of care in relation to trusts refers to which of the following?
A. The liability of trustees for breaches of their duties
B. The need to balance the interests of a life tenant and remaindermen
C. The requirement to protect trust assets
D. The use of investment powers
Question 8
Who organises the issue of new gilts?
A. Bank of England
B. Debt Management Office (DMO)
C. HM Treasury
D. Investment banks
Question 9
In the UK, dividend yields quoted in the national press are based on what?
A. Current share price
B. Historical share price
C. P/E ratios
D. Prospective dividend figure
Question 10
Between December 2021 and the start of September 2022, how many fewer mortgage products were available in the residential sector?
A. 1,175
B. 1,425
C. 1,955
D. 985
Answers
1D Average earnings growth is measured from May to July each year.
2A The new Consumer Duty relates to outcomes that the FCA expects firms to deliver for their customers, but does not require specific documentation.
3B Long-term bonds tend to fluctuate more rapidly than securities with shorter maturity dates.
4D This agreement must be provided before conducting any investment business with retail clients or immediately after where the agreement was concluded at a distance (e.g. over the telephone).
5C ESG is a framework rather than a strategy and refers to a set of criteria used by fund managers to assess a company’s practices.
6C Hedge funds have a higher level of risk than funds investing in traditional assets, but also have the potential for higher returns.
7D The Trustee Act 2000 reformed the investment powers available to trustees and introduced a statutory duty of care.
8B The DMO is responsible for the issue of gilts.
9A In the UK, yield calculations are based on the current share price.
10B 1,425 fewer products were available compared to December 2021, before the first of the recent base rate increases.
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