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CSI AFP-Exam-1 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Technical Competencies | 84% | - Asset and Liability Management - Risk Management and Insurance - Investment Planning - Tax Planning - Estate Planning - Retirement Planning |
| Topic 2: Enabling Competencies | 16% | - Client Relationship and Practice Management - Professional Conduct and Regulatory Compliance |
CSI Applied Financial Planning Certification Exam 1 (AFP) Sample Questions:
Question 1
What information is least important for Harry as a financial planner in his assessment for insurance coverage for his client with respect to estate planning purposes?
A. Income.
B. FMV of non-principal residence.
C. Age.
D. Work location.
Question 2
In order to increase the assets in Rebecca's retirement savings, her financial planner is considering making a number of recommendations. Prior to obtaining her current employment, she withdrew funds from her RRSP under the Lifelong Learning Plan to upgrade her skills. She has four annual installments remaining on her Lifelong Learning Plan withdrawal and a small amount of savings in a TFSA. Rebecca now works as a sales associate in a small clothing store that has a group RRSP program for all employees which matches employee contributions. Which recommendation provides the best long-term impact to grow her retirement savings?
A. Transfer her existing TFSA savings to her RRSP and start a monthly contribution plan.
B. While keeping within her risk tolerance, maximize the equity component of her RRSP and TFSA plans in order to achieve significantly better returns over time.
C. Repay the final four annual installments remaining on her Lifelong Learning Plan and start a monthly contribution plan to her RRSP.
D. Enroll in her company's group RRSP program and start a monthly contribution.
Question 3
Kendrick, age 55, owns a successful small business, ZXC Inc., valued at $800,000. Kendrick has extensive savings outside of the business and would like to pass the company onto his son at some point in the future.
Kendrick expects the business to increase in value $25,000 per year. If Kendrick decides to use an estate freeze to reduce the amount of taxes he will be required to pay, his financial planner should recommend that he implement the estate freeze at which point in relation to gifting the business to his son?
A. To take effect at the time of his passing.
B. At the same time as gifting the company.
C. Immediately.
D. One month prior to gifting the company.
Question 4
Interest rates are expected to rise sharply. Which fixed-income security would normally have the highest price sensitivity to that change, all else equal?
A. Floating-rate note.
B. Twenty-year zero-coupon bond.
C. Six-month treasury bill.
D. High-interest savings account.
Question 5
Chris is a self-employed contractor discussing his retirement plans with his financial planner, Joseph. Chris is considering incorporating his business and drawing funds from his corporation to fund his retirement income, yet he wants to ensure it does not impact his business's financial position. What advice should Joseph give to Chris?
A. Speak with a lawyer to review the impact of incorporating.
B. Speak with an accountant to review the impact of incorporating.
C. Consult an online service that helps individuals incorporate.
D. Inform Chris of the impacts of incorporating and recommend any changes he feels are appropriate.
Solutions:
| Question 1 Answer: D | Question 2 Answer: D | Question 3 Answer: C | Question 4 Answer: B | Question 5 Answer: B |








