Any answers?

1A company is planning to buy a commercial property valued at £600,000. What rate of Stamp Duty is payable on that?

a) Stamp Duty is not payable

b) 2%

c) 3%

d) 4%

2What information do mortgage lenders use to assess the income of self-employed people?

a) Most recent pay slips

b) Drawings from the business

c) Business turnover

d) Business profits

3Geographically, which market sets LIBOR?

a) Leeds

b) Luxembourg

c) London

d) Liverpool

4A mortgage endowment policy has bonuses allocated to it each year. What is this bonus called?

a) Unit-linked bonus

b) Reversionary bonus

c) Tertiary bonus

d) Terminal bonus

5Harry has just lost his job. How long will it normally be before his MPPI policy begins payments?

a) 14 days

b) 60 days

c) 90 days

d) 120 days

6Sharon is concerned that interest rates might rise. How can she protect herself against the interest for her mortgage rising?

a) By switching to a LIBOR linked mortgage

b) By borrowing more money to create a fund that can be used to pay any higher mortgage costs

c) By asking her lender to agree not to increase its rates

d) By switching to a fixed rate mortgage with her existing lender or a new lender

7Elise has just qualified as a commercial barrister. Why might a lender be prepared to lend her more than its normal maximum income multiple?

a) Because barristers may expect to see their income rise sharply in the years after being called to the bar

b) Because she is young and has a long time before retirement

c) Because she is a woman and it is important to avoid accusations of gender discrimination

d) Because she is an existing customer who should be accorded preferences

8An employee who informs the FSA of a breach by their employer is called?

a) An informant

b) An unapproving person

c) A whistle blower

d) A statutory informer

9How many bands of council tax are there in England?

a) 8

b) 7

c) 6

d) 5

10Under which Act was 'Commonhold' introduced?

a) Commonhold and Leasehold Reform Act 2002

b) Property Act 1925

c) Leasehold Reform, Housing and Urban Development Act 1993

d) Commonhold Act 2000

11Tim borrows £100,000 denominated in dollars. If the dollar goes up by 20% in relation to the pound, how much will Tim now owe in sterling terms?

a) £120,000

b) £100,000

c) £80,000

d) £90,000

12What is the main tax advantage of a unit trust for a very wealthy investor?

a) Tax relief is provided on sums they invest

b) The fund managers can buy and sell shares without incurring capital gains tax

c) There is no tax on dividends paid by the unit trust

d) Benefits are tax free when the unit trust is encashed

13A business sets up a group private medical insurance plan, but the employees pay for cover themselves. What is this type of arrangement called?

a) Approved scheme

b) Employer supported scheme

c) Group scheme

d) Voluntary scheme

1d) Stamp Duty applies from a higher threshold on commercial properties

2d) Only business profits - rather than drawings - show the business owner's ability to pay the mortgage

3c) LIBOR stands for London Interbank Offered Rate

4b) A reversionary bonus is added yearly to the sum assured and to any previous reversionary bonuses.

5b) When a valid claim is made there will usually be an excess period of 60 days during which no payment is made

6d) A fixed rate loan may cost more initially but protects against future rate rises.

7a) The nature of the profession dictates how a lender would view this. Barristers, solicitors and accountants are likely to be treated favourably.

8c) Whistle blowers are protected by the Public Interest Disclosure Act 1998.

9a) There are eight council tax price bands in England.

10a) The Commonhold and Leasehold Reform Act 2002 introduced leasehold reforms and a new form of ownership - Commonhold

11a) The dollar's revaluation will mean Tim pays more interest too if the dollar interest rate does not change.

12b) Managers can buy and sell stock without incurring CGT. The wealthy investor may not be able to do that if investing personally

13d) Voluntary schemes are available to employees, often with discounted premiums, but are optional