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

1. James is visiting Gurjeet, his financial planner, to discuss his financial affairs after the recent passing of his long-time partner Peter. James is concerned that the cost of probate will be a heavy burden. Which holdings should Gurjeet advise James are included in calculating the cost of probate?

A) Insurance contracts with a preferred beneficiary designated.
B) Assets held in a formal, irrevocable trust account.
C) Assets held joint tenants in common.
D) Registered plans with an adult child designated as the beneficiary.


2. Priya grants her brother trading authority over her non-registered investment account. Her brother calls the financial planner and asks for Priya's full net worth statement, tax return, and beneficiary information so he can "help with planning." What should the planner do?

A) Disclose the information after confirming the brother's date of birth.
B) Provide only the investment account value and refuse everything else.
C) Decline the request unless Priya gives specific authorization for that information.
D) Provide all information because trading authority gives full access.


3. Demario, age 29, has started his own professional practice. He is single, has a mortgage, and his future earning power is his largest asset. Which insurance should receive priority?

A) Travel medical insurance only.
B) Whole life insurance for estate equalization.
C) Joint last-to-die life insurance.
D) Disability insurance.


4. A client, age 60, is in a low tax bracket today and expects a larger taxable pension after age 65. She has TFSA and RRSP room. Which contribution priority is generally more appropriate?

A) RRSP, because withdrawals are tax-free.
B) Non-registered account only, because registered accounts are unsuitable after age 60.
C) RRSP only after the client turns 72.
D) TFSA, because withdrawals will not increase taxable retirement income.


5. Ivan relocates for a new job and wants to know whether his move may qualify for the work-related moving expense deduction. What minimum distance test is generally relevant?

A) The new home must be at least 25 kilometres closer to the new work location.
B) The new home must be at least 10 kilometres closer to the new work location.
C) The new home must be at least 40 kilometres closer to the new work location.
D) The new home must be at least 30 kilometres closer to the new work location.


Solutions:

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

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