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

  • Exam Code: AFP-Exam-1
  • Exam Name: Applied Financial Planning Certification Exam 1 (AFP)
  • Updated: Sep 08, 2026     Q & A: 120 Questions and Answers

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About CSI AFP-Exam-1 Exam

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CSI AFP-Exam-1 Exam Syllabus Topics:

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

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

Question #1

Tony, a financial planner, is meeting with his client, Howard, age 42. Howard would like to retire in 15 years.
His retirement goal is to have an annual gross income of $30,000 (in today's dollars). He is currently contributing $2,400 each year to his RRSP which is currently worth $275,000. Assume an average annual inflation rate of 3%, rate of return of 4% for the registered assets and a life expectancy to age 90. What will Tony determine as Howard's current surplus/shortfall at retirement?

  • A. Shortfall of $16,801.
  • B. Shortfall of $20,671.
  • C. Surplus of $16,801.
  • D. Surplus of $20,671.
Answer: A

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Question #2

A client believes that security prices quickly reflect public information and wants broad Canadian equity exposure with low cost and minimal manager discretion. What investment best matches this view?

  • A. Portfolio of five selected mining stocks.
  • B. One-year cashable GIC.
  • C. Sector-specific hedge fund.
  • D. Canadian index exchange-traded fund.
Answer: D

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Question #3

Mina has $20,000 in a savings account earning 3% before tax. She also has a $9,000 credit card balance at
22%, a $7,000 unsecured line of credit at 10%, and a $14,000 car loan at 4%. Her marginal tax rate is 35%.
Which liability should she target first?

  • A. No debt; keep all funds in savings.
  • B. Unsecured line of credit.
  • C. Credit card balance.
  • D. Car loan.
Answer: C

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Question #4

Alexander and Irena, age 30 and 32 respectively, are married and have been working full-time for one year.
They have a daughter, age 3, and are expecting their second child. They recently bought a home with a mortgage balance of $390,000 at 4% amortized over 25 years. Their financial planner is trying to determine their tolerance for risk. After completing the life-cycle analysis, how can their financial planner explain the stage in which the couple finds themselves and the risk tolerance associated with it?

  • A. They are at the accumulation stage where they can tolerate a high level of risk.
  • B. They are at the consolidation stage where they can tolerate moderate to high level of risk.
  • C. They are at the financial independence stage where their tolerance of risk is low.
  • D. They are at the gifting stage where their tolerance of risk is low.
Answer: A

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Question #5

If a deceased person was entitled to rights or things at death, what strategy should the estate representative use to enhance the net estate value after tax?

  • A. Transfer ownership of the rights or things to the beneficiaries of the estate.
  • B. Include the rights or things in a second personal tax return for the deceased.
  • C. File for annual tax reassessments on the terminal tax return until all rights or things are paid.
  • D. Include the rights or things in the deceased's final personal tax return.
Answer: B

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