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

AFP-Exam-1 Exam Simulator
  • Exam Code: AFP-Exam-1
  • Exam Name: Applied Financial Planning Certification Exam 1 (AFP)
  • Updated: Jul 18, 2026
  • Q & A: 120 Questions and Answers

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CSI AFP-Exam-1 exam simulator

CSI AFP-Exam-1 Exam Syllabus Topics:

SectionObjectives
Taxation Concepts- Tax-efficient investment strategies
- Personal income tax principles
Investment Planning- Investment products and risk-return profiles
- Asset allocation and portfolio basics
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
Retirement Planning- Retirement savings vehicles and planning principles

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

1. 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.


2. Lois is reviewing her client Raj's retirement plan. To stay on track, Raj's TFSA (with a current balance of
$10,000) will need to be worth $42,000 in five years. Raj is able to contribute his annual bonus of $5,000 at the end of each year. For Raj to stay on plan, what rate of return does Lois need to be targeting?

A) 5.64%.
B) 5.71%.
C) 7.67%.
D) 6.36%.


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


4. Daniel, age 55, plans to continue working for AMG Telecommunications Corporation until he retires at age
60. The company has a defined contribution plan and Daniel is looking for the best option that will allow him to receive the highest guaranteed income throughout his retirement. He is not concerned about leaving an estate and feels that interest rates will be at high levels as he nears retirement. What planning strategy should Daniel's financial planner recommend he implement to achieve this objective?

A) Use the proceeds to purchase a life annuity.
B) Transfer proceeds to a locked-in RRSP and purchase a laddered GIC.
C) Use the proceeds to purchase a principal-protected note.
D) Transfer proceeds to a LIRA and purchase a target date fund.


5. A client wants a policy that pays a lump sum if she is diagnosed with a covered serious illness and survives the required waiting period. Which product matches this need?

A) Long-term care insurance.
B) Disability insurance.
C) Critical illness insurance.
D) Accidental death insurance.


Solutions:

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

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