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

Question 1

Edward is risk averse and has limited investment knowledge. He will only purchase 100% guaranteed products insured by the CDIC. Edward is meeting with his financial planner, Marissa, for the third time this year about rates, and starts the meeting by criticizing her employer for paying such low returns on GICs.
Edward says he is considering taking his business elsewhere. How should Marissa respond to Edward's comments?

A. Explain that if he can increase his risk tolerance, she can get a better rate of return for him.
B. Offer to match any competitor rate Edward can provide in writing.
C. Show understanding of his frustration, assure him that these are the best rates she can offer and suggest a follow up meeting once Edward has had a chance to shop around.
D. Let him know that her GIC rate is the highest in the market.

Question 2

During implementation, a client agrees to update her will, purchase disability insurance, and increase RRSP contributions. Which statement best describes the planner's role?

A. Focus only on the RRSP contribution because it creates an investment transaction.
B. Complete the will without involving a lawyer.
C. Clarify responsibilities, timelines, and any required referrals or product steps.
D. Assume the client will implement everything without follow-up.

Question 3

Sapphire, age 35, a recent widow, is still in the grieving stage. She has just received a large insurance payout.
She has limited savings, a long-term time horizon, and a high tolerance for risk. What investment strategy should her financial planner recommend until Sapphire is better able to understand her new situation?

A. Deposit the funds into a moderate risk investment portfolio.
B. Deposit the funds into a portfolio of traditional and index-linked guaranteed investment certificates.
C. Deposit the funds into a high-risk investment portfolio.
D. Deposit the funds into a high interest savings account.

Question 4

A business owner completes an estate freeze, taking back preferred shares with a fixed redemption value while children receive common shares. What is a primary risk of this strategy for the owner?

A. The freeze automatically eliminates all tax at death.
B. The children can never benefit from future growth.
C. No future growth can occur in the corporation.
D. The owner's retained preferred shares may not provide adequate income or inflation protection.

Question 5

Henri and Jessica have recently moved in together and Henri has been helping Jessica with her investments.
Jessica names Henri trading authority on her TFSA. Henri calls their financial planner requesting to make Jessica's TFSA contribution for this year but first requests the overall balance in Jessica's bank accounts (TFSA, high yield savings, chequing) to know if this is possible. What action would be most appropriate for their financial planner to take?

A. Advise Henri that Jessica should contact the financial planner directly.
B. Allow Henri to make the contribution from his account, but do not disclose the balance.
C. Provide Henri with the balance since he has authority over the account.
D. Recommend they establish an enduring power of attorney over Jessica.

Solutions: