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

AFP-Exam-1 Exam Simulator
  • Exam Code: AFP-Exam-1
  • Exam Name: Applied Financial Planning Certification Exam 1 (AFP)
  • Updated: Oct 27, 2026
  • Q & A: 120 Questions and Answers
  • CSI AFP-Exam-1 Q&A - in .pdf

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CSI AFP-Exam-1 Exam Syllabus Topics:

SectionWeightObjectives
Enabling Competencies16%- Professional Conduct and Regulatory Compliance
- Client Relationship and Practice Management
Technical Competencies84%- Tax Planning
- Risk Management and Insurance
- Investment Planning
- Estate Planning
- Asset and Liability Management
- Retirement Planning

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

Question #1

Keitaro, age 42, and Ruth, age 52, are married and have two children - Maximo, age 20, and Hannah, age 16, both from Keitaro's previous marriage. In the event Keitaro dies, he would like to minimize taxes, provide for Ruth for the remainder of her life, and then after her death leave the residual to his children. What estate planning strategy should his financial planner recommend to help Keitaro achieve his goal?

  • A. Transfer his assets to a testamentary spousal trust through a will and name his children as income and capital beneficiaries.
  • B. Transfer his assets to an inter vivos spousal trust through a will and name his children as income and capital beneficiaries.
  • C. Transfer his assets to a testamentary spousal trust through a will and name his children as capital beneficiaries.
  • D. Transfer his assets to an inter vivos spousal trust through a will and name his children as capital beneficiaries.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Question #2

A financial planner, Rachel, is preparing to recommend a discretionary portfolio manager to her client. The portfolio manager is owned by Rachel's former employer, and Rachel receives no referral fee. However, the former employer regularly sends new clients to Rachel's practice. What should Rachel do before making the recommendation?

  • A. Recommend the manager only if the client signs a risk acknowledgement form.
  • B. Avoid discussing the portfolio manager and let the client find one independently.
  • C. Proceed because no monetary referral fee is paid.
  • D. Disclose the relationship and the potential conflict before the client decides.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Question #3

Justis, age 62, and his wife Jen, age 58, are meeting with their financial planner, Luke. They are both planning to retire by age 65. Their goals are to minimize debt and reduce taxes. The couple's financial situation is outlined below.

Justis' annual income is $25,000. He has a $15,000 RRSP, $30,000 single non-registered account and a
$25,000 TFSA. Jen's annual income is $60,000, and she has a $150,000 RRSP, $50,000 single non-registered account and a $20,000 TFSA.
Jen's marginal tax rate is 35%, and Justis' is 25%. Assuming all investments are making interest income of
10%, what would be the most appropriate strategy for Luke to recommend for the couple?

  • A. Use Justis's non-registered funds to pay off all liabilities.
  • B. Use Jen's RRSP to pay all liabilities.
  • C. Use Jen's non-registered funds to pay all liabilities.
  • D. Use Justis's RRSP to pay off all liabilities.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Question #4

What financial information would Deandra a financial planner, analyze in order to increase her client's net worth by decreasing expenses?

  • A. Net worth statement
  • B. Current cash flow statement
  • C. Expense report
  • D. Budget
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Question #5

What key question should be answered during the recommending strategies stage of the financial planning process?

  • A. Are the client's goals feasible?
  • B. How and by whom will the planner be compensated?
  • C. What are the client's needs and goals?
  • D. How can the client achieve her goals?
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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