CSI AFP-Exam-1 : Applied Financial Planning Certification Exam 1 (AFP)

AFP-Exam-1 pass collection

Exam Code: AFP-Exam-1

Exam Name: Applied Financial Planning Certification Exam 1 (AFP)

Updated: Sep 01, 2026

Q & A: 120 Questions and Answers

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CSI AFP-Exam-1 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Asset and Liability Management11%- Personal Balance Sheet Analysis
- Budgeting
- Debt Management
- Cash Flow Management
Topic 2: Investment Planning17%- Asset Allocation
- Investment Theory
- Investment Products
- Portfolio Construction
Topic 3: Estate Planning13%- Powers of Attorney
- Wills
- Trust and Beneficiary Planning
- Estate Transfer Strategies
Topic 4: Tax Planning14%- Tax-Efficient Strategies
- Registered Plans
- Income Tax Fundamentals
- Tax Deductions and Credits
Topic 5: Client Relationship and Practice Management6%- Communication and Advisory Process
- Practice Management
- Client Discovery
Topic 6: Retirement Planning17%- Pension Plans
- Retirement Needs Analysis
- Registered Retirement Savings Plans
- Retirement Income Strategies
Topic 7: Risk Management and Insurance12%- Risk Assessment
- Disability and Health Insurance
- Life Insurance
- Risk Transfer Strategies
Topic 8: Professional Conduct and Regulatory Compliance10%- Regulatory Requirements
- Compliance Responsibilities
- Ethics and Professional Standards

CSI Applied Financial Planning Certification Exam 1 (AFP) Sample Questions:

Question 1

Chris is a self-employed contractor discussing his retirement plans with his financial planner, Joseph. Chris is considering incorporating his business and drawing funds from his corporation to fund his retirement income, yet he wants to ensure it does not impact his business's financial position. What advice should Joseph give to Chris?

A. Speak with a lawyer to review the impact of incorporating.
B. Inform Chris of the impacts of incorporating and recommend any changes he feels are appropriate.
C. Speak with an accountant to review the impact of incorporating.
D. Consult an online service that helps individuals incorporate.


Question 2

Alexis has an index-linked GIC with an adjusted cost base of $20,500. The GIC was issued one year ago, has four years remaining to maturity and provides her with 60% participation in the gains of the S & P/TSX 60 Index, based on the level of the Index at maturity or at redemption prior to maturity. The GIC has a 2% fee if redeemed in the first two years. Alexis notices that the S & P/TSX 60 Index is up 25% and she would like to redeem her GIC. She asked her financial planner if she redeems her GIC, how much she would receive upon redemption. What will her financial planner tell her?

A. She will receive $20,500.
B. She will receive $25,625.
C. She will receive $23,104.
D. She will receive $23,575.


Question 3

A client refuses to provide details about debt balances, tax returns, and monthly expenses but asks the planner to confirm whether retirement at age 55 is achievable. What should the planner do?

A. Explain that the conclusion will be limited or unreliable without the missing information.
B. Proceed only with investment recommendations.
C. Use generic assumptions and present the plan as reliable.
D. Estimate the figures secretly from the client's age and income.


Question 4

Keitaro wants his spouse to receive income from his assets for life after his death, but wants the remaining capital to pass to his children from a prior marriage after the spouse dies. Which strategy best fits this objective?

A. Adding the children as joint owners on all assets immediately.
B. Outright gift of all assets to the spouse.
C. Naming the estate as beneficiary of every account without trust provisions.
D. Testamentary spousal trust naming the children as capital beneficiaries.


Question 5

Two shareholders sign a buy-sell agreement requiring the surviving shareholder to purchase the deceased shareholder's shares at fair market value. What planning tool most directly funds the death-triggered purchase obligation?

A. Corporate-owned or cross-owned life insurance.
B. A shareholder RRSP.
C. A personal line of credit in the surviving shareholder's name only.
D. Travel accident insurance.


Solutions:

Question 1
Answer: C
Question 2
Answer: C
Question 3
Answer: A
Question 4
Answer: D
Question 5
Answer: A

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