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CISI Investment, Risk & Taxation Latest Update Questions with Verified Answers Guaranteed Pass Reliable

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CISI Investment, Risk & Taxation Latest Update Questions with Verified Answers Guaranteed Pass Reliable "Bulldog" bonds are: - Answer -Sterling bonds issued in the UK by a foreign entity "Dark green" vs "Light green" funds - Answer -Dark green - negative screening Light green - positive screen...

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  • August 31, 2024
  • 22
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • Finance
  • Finance
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Eddiebeststudy
CISI Investment, Risk & Taxation Latest
Update Questions with Verified
Answers Guaranteed Pass Reliable
"Bulldog" bonds are: - Answer -Sterling bonds issued in the UK by a foreign entity

"Dark green" vs "Light green" funds - Answer -Dark green - negative screening

Light green - positive screening

"Residence" - Answer -status in a given tax year

2 most common types of open-ended funds - Answer -- Unit Trusts

- OEICs

3 biases of performance reporting for ARFs - Answer -- self-selection bias

- backfill bias

- survivorship

3 components of risk for investors - Answer -Risk tolerance

Risk attitude

Risk capacity

3 stages of top-down portfolio management - Answer -1. Asset allocation

2. Sector selection

3. Individual stock selection

3 types of unemployment - Answer -cyclical

frictional

structural

4 Factors of productivity - Answer -land

labour

capital

enterprise

4 types of crowdfunding - Answer -- Investment

,- Loan

- Donation

- Reward

5 main elements of BoE's framework - Answer -- Sterling Monetary Framework (SMF)

- non-interest based facilities

- term funding scheme (TFS)

- gilt/corporate bond holdings

- short-term non-sterling liquid facilities

Advantages of a wrap platform - Answer -- greater automation

- improved efficiency

- instant valuations

- improved reporting

Amount policyholder can withdraw each year from investment bond tax-free - Answer -5%

Arbritrage pricing theory relies on: - Answer -regression analysis

Are NS&I premium bonds tax-free? - Answer -Yes

Are repair costs deductible from CGT? - Answer -No

Are vintage cars and normal cars liable for CGT? - Answer -Typically not, they are only liable if they
have been used for business purposes

Authorised corporate director - Answer -day-to-day operation and management of UK-authorised
OEICs

Bare trust: beneficiary has ____ - Answer -IMMEDIATE and ABSOLUTE right to both capital and
income

Bare Trusts - tax treatment - Answer -Trust is effectively ignored, the beneficiary pays at their
marginal rate.

Benchmarks should be: - Answer -- Unambiguous

- Investable

- Measurable

- Appropriate

- Specified in advance

, Benefit of purchasing gilt directly through Computershare - Answer -pay lower commission

Blind - additional exemption - Answer -+2500 to personal allowance

Blue bonds are: - Answer -Issued by govts or banks to finance marine and ocean-based projects

BoE tool for interest rates - Answer -gilt repo market

Broad money - Answer -M4 - notes and coins in circulation

and instant access and time deposits

of UK residents in UK banks and building societies

By when is the SPA for men and women expected to increase to 67? - Answer -2028

Can the expenses of an offshore fund be offset against its income? - Answer -No

Capital gains made within an OEIC are: - Answer -Exempt

Capital redemption bond - Answer -no insurance element, used purely for investment

Capital redemption bonds - Answer -- NO insurance element

- purely for investment purposes

- only pay out on expiry or early encashment

Capitalisation rate for value of buy-to-let property - Answer -Net operating income divided by sales
price

CGT Annual Tax Exemption - Answer -£12,300 (most residents)

then

10% for basic rate

20% for higher and additional taxpayers

CGT rates for property - Answer -18%

and

28%

Chief difficulty of devaluing home currency to balance international payments - Answer -need to
raise interest rates which may also raise currency rates

Class 3 contributions can be made how many years after? - Answer -6 years

Contribution limits to pensions - Answer -- £40,000 maximum

- reduce £1 for every £2 earned over £240k

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