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 09, 2026

Q & A: 120 Questions and Answers

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CSI AFP-Exam-1 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Technical Competencies84%- Retirement Planning
- Estate Planning
- Asset and Liability Management
- Investment Planning
- Risk Management and Insurance
- Tax Planning
Topic 2: Enabling Competencies16%- Professional Conduct and Regulatory Compliance
- Client Relationship and Practice Management

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

Question 1

Evan meets with his financial planner to review his concerns around inflation and its impact on his TFSA investment portfolio. His financial planner researches the current holdings and recommends that he sells one of the portfolio's equity funds. Which replacement option should the financial planner recommend to Evan?

A. Treasury bills.
B. Gold bullion.
C. Real estate investment trusts.
D. Guaranteed investment certificates.


Question 2

William and Jennifer are selling their business which qualifies as a Canadian-controlled private corporation.
When the sale is complete at the end of this year, William and Jennifer will each receive $4 million for their common shares which have nominal cost. Jennifer has unused capital losses from previous years. They are meeting with Laurel, their financial planner, to discuss the tax implications of the sale. Based on the information provided, what should Laurel recommend to William and Jennifer so that they are best able to make use of the Lifetime Capital Gains Exemption?

A. Only William should claim 100% of the exemption.
B. They should each claim 50% of the exemption.
C. Only Jennifer should claim 100% of the exemption.
D. They should each claim 100% of the exemption.


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


Question 4

Consider the following information for a client's portfolio:

What is the annual rate of return for this portfolio?

A. 10.8%.
B. 24.8%.
C. 17.8%.
D. 9.94%.


Question 5

Dianna has just taken a 20-year mortgage and wants insurance only to ensure the mortgage can be repaid if she dies during that period. She is considering whole life insurance. What should her planner most likely explain?

A. Critical illness insurance replaces life insurance for mortgage protection.
B. No insurance is needed if the mortgage is insured by the lender.
C. Whole life is always cheaper for temporary mortgage needs.
D. Term insurance is generally better aligned with a temporary liability.


Solutions:

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

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