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

"Applied Financial Planning Certification Exam 1 (AFP)", also known as AFP-Exam-1 exam, is a CSI Certification. With the complete collection of questions and answers, Pass4sureCert has assembled to take you through 120 Q&As to your AFP-Exam-1 Exam preparation. In the AFP-Exam-1 exam resources, you will cover every field and category in Canadian Securities Course Certification helping to ready you for your successful CSI Certification.

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  • Exam Code: AFP-Exam-1
  • Exam Name: Applied Financial Planning Certification Exam 1 (AFP)
  • Certification Provider: CSI
  • Corresponding Certification: Canadian Securities Course
  • Updated: Oct 07, 2026
  • No. of Questions: 120 Questions & Answers with Testing Engine
  • Download Limit: Unlimited

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CSI AFP-Exam-1 Exam Syllabus Topics:

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

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

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 an inter vivos spousal trust through a will and name his children as 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 a testamentary spousal trust through a will and name his children as income and capital beneficiaries.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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A retiree receives income-tested benefits and needs occasional withdrawals for vacations and home repairs.
Which account is generally most efficient for withdrawals that do not increase taxable income?

  • A. Non-registered interest-bearing GIC.
  • B. RRSP.
  • C. TFSA.
  • D. RRIF.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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A higher-income spouse contributes to a spousal RRSP for the lower-income spouse. The lower-income spouse withdraws the contribution amount the following year. What should the planner warn them about?

  • A. The withdrawal is always tax-free.
  • B. The withdrawal must be taxed as capital gains.
  • C. The withdrawal may attribute back to the contributing spouse.
  • D. The contribution permanently eliminates all future spousal RRSP room.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Ronny, a successful business owner, established a discretionary family trust earlier this year as a means to split income with his children. Ronny's children are both under the age of five and are both income and capital beneficiaries of the trust. He is concerned that the 21-year rule will result in a significant amount of tax resulting from unrealized capital gains. What strategy would be best if Ronny's goal is to minimize the total amount of tax payable by the trust and/or beneficiaries at the 21-year mark?

  • A. Realize all capital gains at the 21-year mark and leave the capital gains' income taxable to the trust.
  • B. Revoke the trust just prior to the 21-year mark to avoid paying any capital gains tax to the trust or beneficiaries.
  • C. Turn over the trust portfolio annually and designate any capital gains to beneficiaries.
  • D. Realize all capital gains at the 21-year mark and designate this income to the beneficiaries.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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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. 9.94%.
  • D. 17.8%.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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