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Free Applied Financial Planning Certification Exam 1 (AFP) Practice Questions

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Exam style questions across every AFP-Exam-1 domain

Last Update 4 days ago
Total Questions : 117

Start with our free AFP-Exam-1 practice questions, carefully crafted to mirror the domains, phrasing, and difficulty of the real Canadian Securities Course exam. Each AFP-Exam-1 exam question comes with a detailed rationale that explains not just which answer is correct but why the others fall short. That's how concepts stick. Use the free set to benchmark yourself: identify your CSI weak domains, see where you're losing marks, and build a focused study plan in minutes.

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Question # 31

Samantha is meeting with a financial planner for the first time, seeking help with both investing and debt management. She's finding it hard to get ahead because she recently graduated with student debt, started a new career in her field, and is adding credit card debt each month. What recommendation should the financial planner propose?

Options:

A.  

Samantha should eliminate her credit card and use her debit card for purchases.

B.  

Samantha should set up automatic RRSP payroll deductions.

C.  

Samantha should review her budget.

D.  

Samantha should prioritize reducing her student loan debt.

Discussion 0
Question # 32

Clara invested $150,000 with Roper Counsel, a member of CIRO. Her portfolio consists entirely of Canadian mutual funds. Roper Counsel recently became insolvent and declared bankruptcy. Where can Clara seek help to recover her financial losses due to this event?

Options:

A.  

Office of the Superintendent of Financial Institutions.

B.  

MFDA Investor Protection Corporation.

C.  

Assuris.

D.  

Canadian Investor Protection Fund.

Discussion 0
Question # 33

A retiree holds most of her investments in interest-bearing GICs inside a non-registered account while her TFSA is invested in cash. She has unused TFSA room and wants to improve after-tax efficiency without increasing total portfolio risk materially. What should the planner consider?

Options:

A.  

Holding more interest-bearing assets inside the TFS

A.  

B.  

Moving all assets into speculative equities.

C.  

Withdrawing RRIF minimums and gifting them immediately.

D.  

Borrowing to invest in the non-registered account.

Discussion 0
Question # 34

Which asset is most likely to flow through a deceased person’s estate rather than pass automatically outside the estate?

Options:

A.  

Asset held as joint tenants with right of survivorship.

B.  

Asset owned as tenants in common.

C.  

Life insurance with a named beneficiary.

D.  

RRSP with a named spouse as beneficiary.

Discussion 0
Question # 35

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?

Options:

A.  

Car loan.

B.  

Credit card balance.

C.  

Unsecured line of credit.

D.  

No debt; keep all funds in savings.

Discussion 0

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