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CSI AFP-Exam-1 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Enabling Competencies | 16% | - Client Relationship and Practice Management - Professional Conduct and Regulatory Compliance |
| Topic 2: Technical Competencies | 84% | - Estate Planning - Investment Planning - Tax Planning - Asset and Liability Management - Risk Management and Insurance - Retirement Planning |
CSI Applied Financial Planning Certification Exam 1 (AFP) Sample Questions:
1. Bill was recently declined for a loan application at his financial institution, and he is concerned that a liability has been added to his credit bureau that does not belong to him. He asks his financial planner to review his credit bureau with him to help him identify why he may have been declined. Which area of the credit bureau might his financial planner advise Bill to review?
A) Number of previous declines.
B) Account history.
C) Public record information.
D) Inquiries.
2. Ali wishes to retire in five years. His financial planner calculates that he needs to save an additional $40,000 to meet his retirement income objectives. What would Ali's financial planner advise him to do in order to meet his retirement income objectives?
A) Purchase a whole-life insurance and invest within the policy.
B) Reduce current expenses.
C) Take out a mortgage to invest and fund some of the retirement income shortage.
D) Invest more in equity market to achieve a higher return.
3. At the first meeting, a financial planner explains her services, compensation, responsibilities, limitations, confidentiality practices, and what information the client must provide. Which document should normally capture these matters?
A) Client agreement letter.
B) Trade confirmation.
C) Retirement income projection.
D) Fund facts document.
4. Owen and Lina are looking to purchase a home in the next few months. Owen is the primary income earner for the family. His credit history is weak with several recently paid collections Lina has a perfect credit record but limited income and irregular employment. What will their financial planner advise them about the impact their credit ratings will have on their ability to secure a mortgage?
A) Lina's strong credit rating will make up for Owen's credit history
B) The primary income earner must have a minimum credit score to qualify
C) Lina's low income will prevent them from qualifying
D) Since Owen's collections are paid, they would be able to qualify
5. Mina has $20,000 in a savings account earning 3% before tax. She also has a $9,000 credit card balance at
22%, a $7,000 unsecured line of credit at 10%, and a $14,000 car loan at 4%. Her marginal tax rate is 35%.
Which liability should she target first?
A) No debt; keep all funds in savings.
B) Credit card balance.
C) Unsecured line of credit.
D) Car loan.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: B | Question # 3 Answer: A | Question # 4 Answer: B | Question # 5 Answer: B |
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