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

  • Exam Code: AFP-Exam-1
  • Exam Name: Applied Financial Planning Certification Exam 1 (AFP)
  • Updated: Sep 14, 2026
  • Q & A: 120 Questions and Answers

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CSI AFP-Exam-1 Exam Syllabus Topics:

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

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

Question #1

Lex's client, Phillip, has signed an agreement to purchase his uncle's business when his uncle retires in five years for $210,000. Phillip has $175,000 today, how should Lex recommend Philip invest his money?

  • A. Phillip should deposit the funds into a savings account which is currently paying 3.00% per year.
  • B. Phillip should purchase an equity mutual fund which has had an average return of 6.00% a year for the past five years.
  • C. Phillip should purchase a 5-year 3.50% annual GIC.
  • D. Phillip should purchase a 5-year bond with a rate of 3.75%.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Question #2

Jaycee has created an investment portfolio for his client, Adam, which is designed to achieve his long-term objectives and is consistent with his risk tolerance and constraints. It also has to be reassessed periodically to ensure that the long-term benchmark mix continues to reflect Adam's circumstances. Which asset allocation strategy is Jaycee utilizing?

  • A. Tactical.
  • B. Active.
  • C. Strategic.
  • D. Integrated.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Question #3

Which statement best distinguishes a defined benefit pension plan from a defined contribution pension plan?

  • A. A defined contribution plan eliminates investment and longevity risk for the member.
  • B. A defined benefit plan generally provides a formula-based pension benefit.
  • C. A defined contribution plan guarantees the final lifetime pension amount.
  • D. A defined benefit plan has no employer involvement.
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Correct Answer: B  🗳️

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Question #4

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. Moving all assets into speculative equities.
  • B. Holding more interest-bearing assets inside the TFSA.
  • C. Withdrawing RRIF minimums and gifting them immediately.
  • D. Borrowing to invest in the non-registered account.
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Question #5

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

  • A. Investment policy statement only.
  • B. Beneficiary designation form.
  • C. Current cash flow statement and budget.
  • D. Net worth statement only.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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