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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  • Updated on: Sep 22, 2026
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  • Updated on: Sep 22, 2026
  • No. of Questions: 120 Questions & Answers

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CSI AFP-Exam-1 Exam Syllabus Topics:

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

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

Carla, a financial planner, is meeting with a long-standing client, Jonathan. Jonathan informs Carla that he is upset and disappointed with the negative returns experienced with his investment portfolio. After acknowledging Jonathan's concerns, what should Carla's first step be in addressing his complaint?

  • A. Remind Jonathan that investing is a long-term process and losses will likely be recovered.
  • B. Revisit Jonathan's goals, objectives and risk tolerance with him.
  • C. Offer alternative investment options in line with Jonathan's risk tolerance.
  • D. Remind Jonathan about the risks associated with investing, as well as the possible volatility and impact on investment returns.
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Dianna is visiting with Karen, her Financial Planner, and is excited to report that she has just bought her dream home. She has also let Karen know she Is meeting with an insurance representative to purchase a whole life insurance to cover her 20-year mortgage. Why might Karen suggest Dianna consider term life insurance instead?

  • A. It is better suited for long term insurance needs.
  • B. The term policy has a cash value, which can be borrowed against.
  • C. The client's health may deteriorate as she gets older.
  • D. The cost of premiums is lower than whole life.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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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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Robert is meeting with his wealth advisor to review options to put a plan in place to save for his children's education. He has a daughter, age seven, and a disabled son, age four Robert would like to maximize his savings towards this goal, ensure the strategy is tax efficient and utilize available grants. Which option is most appropriate for Robert's plan?

  • A. Establish a group RESP and start contributions
  • B. Establish a family RESP and start contributions
  • C. Establish individual RESP for his children
  • D. Set up an education purpose trust account for both beneficiaries with a lump-sum investment
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Francois and Brigitte are meeting with their financial planner, Robin. They would like to ensure that if one of them were to die suddenly that their mortgage would be paid in full. Their current mortgage has an outstanding balance of $400,000 with 10 years remaining. The couple are in good health and have a well- balanced financial plan that focuses on debt reduction and savings. Which type of insurance policy should Robin recommend to assist the couple in meeting their objective?

  • A. Joint 10-year term last-to-die policy.
  • B. Joint whole life first-to-die policy.
  • C. Joint whole life last-to-die policy.
  • D. Joint 10-year term first-to-die policy.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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