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

AFP-Exam-1 pass collection

Exam Code: AFP-Exam-1

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

Updated: Aug 26, 2026

Q & A: 120 Questions and Answers

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

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CSI AFP-Exam-1 Exam Syllabus Topics:

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

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

1. Jonathan owns a medium size consulting firm and earns an average annual income of $150,000. He is reviewing his retirement plan with his financial planner. Jonathan asked his planner about retirement compensation arrangement and how this may benefit him. What should his financial planner tell him?

A) It is exempt from regulatory limits and withdrawals are tax-exempt for the executive.
B) It results in a pension adjustment and withdrawals are tax-exempt for the recipient.
C) It leaves RRSP contribution room unaffected and is exempt from regulatory limits.
D) It reduces RRSP contribution room but is exempt from regulatory limits.


2. Bruna is a senior financial planner. At 4 p.m. on Friday afternoon (an hour before closing), her manager asks her to complete the following:
Fix a mutual fund trade that was entered incorrectly by a junior financial planner.
Call her client to advise him that his account is overdrawn, and the bank will refuse recent payments unless he credits the account before 5 p.m.
Bruna determines she can only complete one of the two tasks before the end of the business day. How should Bruna address her supervisor's request?

A) Ask the manager which of the two problems should be prioritized. Then ask the manager to delegate the other task to a colleague.
B) Bruna should prioritize the client with the overdrawn account since he is one of her clients. She should then reverse the incorrect trade the following business day.
C) Stay after hours until she completes both tasks.
D) Bruna should let the client's payments bounce since the client is unable to manage his cash flow and Bruna should prioritize correcting the trade.


3. Sapphire, age 35, a recent widow, is still in the grieving stage. She has just received a large insurance payout.
She has limited savings, a long-term time horizon, and a high tolerance for risk. What investment strategy should her financial planner recommend until Sapphire is better able to understand her new situation?

A) Deposit the funds into a high interest savings account.
B) Deposit the funds into a high-risk investment portfolio.
C) Deposit the funds into a portfolio of traditional and index-linked guaranteed investment certificates.
D) Deposit the funds into a moderate risk investment portfolio.


4. Ivan relocates for a new job and wants to know whether his move may qualify for the work-related moving expense deduction. What minimum distance test is generally relevant?

A) The new home must be at least 25 kilometres closer to the new work location.
B) The new home must be at least 30 kilometres closer to the new work location.
C) The new home must be at least 40 kilometres closer to the new work location.
D) The new home must be at least 10 kilometres closer to the new work location.


5. Rosa has just learned that her daughter Marissa, age 23, does not intend to return to university. She has been saving for her daughter's education since Marissa was 10 and is concerned there will be a significant tax liability. How should Rosa's financial planner advise her to utilize the funds when she redeems the RESP in order to offset the tax liability?

A) Deposit the growth into her daughter's RRSP.
B) Deposit the full balance into her own RRSP.
C) Deposit the full balance into her daughter's RRSP.
D) Deposit the growth into her own RRSP.


Solutions:

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

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