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

CSI AFP-Exam-1 exam
  • Exam Code: AFP-Exam-1
  • Exam Name: Applied Financial Planning Certification Exam 1 (AFP)
  • Updated: Jul 27, 2026
  • Q & A: 120 Questions and Answers
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CSI AFP-Exam-1 Exam Syllabus Topics:

SectionObjectives
Topic 1: Investment Planning- Asset allocation and portfolio basics
- Investment products and risk-return profiles
Topic 2: Taxation Concepts- Personal income tax principles
- Tax-efficient investment strategies
Topic 3: Financial Planning Foundations- Ethics and professional standards in financial advising
- Financial planning process and client relationship management
Topic 4: Insurance and Risk Management- Life and health insurance fundamentals
- Risk mitigation strategies in financial planning
Topic 5: Retirement Planning- Retirement savings vehicles and planning principles

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

1. Demario, age 28, has just started his own law firm. He met with his financial planner, Ivy, and she told him that he needs insurance, but Ivy did not specify which type. Demario is single and owns his own home. At this point in his career, his greatest asset is his human capital. Which type of insurance should Ivy have specified to purchase in order for Demario to best protect this asset?

A) Extended health care.
B) Term Life.
C) Critical Illness.
D) Disability.


2. A client wants to increase net worth by identifying spending reductions and increasing monthly surplus.
Which document is most useful for this purpose?

A) Beneficiary designation form.
B) Current cash flow statement and budget.
C) Investment policy statement only.
D) Net worth statement only.


3. A retiree holds most of her investments in interest-bearing GICs inside a non-registered account while her TFSA is invested in cash. She has unused TFSA room and wants to improve after-tax efficiency without increasing total portfolio risk materially. What should the planner consider?

A) Withdrawing RRIF minimums and gifting them immediately.
B) Holding more interest-bearing assets inside the TFS
C) Moving all assets into speculative equities.
D) Borrowing to invest in the non-registered account.


4. Samantha is meeting with a financial planner for the first time, seeking help with both investing and debt management. She's finding it hard to get ahead because she recently graduated with student debt, started a new career in her field, and is adding credit card debt each month. What recommendation should the financial planner propose?

A) Samantha should review her budget.
B) Samantha should set up automatic RRSP payroll deductions.
C) Samantha should eliminate her credit card and use her debit card for purchases.
D) Samantha should prioritize reducing her student loan debt.


5. A client asks when his RRSP must generally be converted to a retirement income vehicle. What should the planner explain?

A) By the end of the year he turns 71.
B) Only when he stops working.
C) Only after all RRSP assets are withdrawn in cash.
D) On the day he turns 65.


Solutions:

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

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