Free CSI AFP-Exam-1 Exam Questions

Question 1

Owen and Lina are looking to purchase a home in the next few months. Owen is the primary income earnerfor the family. His credit history is weak with several recently paid collections Lina has a perfect credit recordbut limited income and irregular employment. What will their financial planner advise them about the impacttheir credit ratings will have on their ability to secure a mortgage?

A : The primary income earner must have a minimum credit score to qualify

B : Since Owen's collections are paid, they would be able to qualify

C : Lina's strong credit rating will make up for Owen's credit history

D : Lina's low income will prevent them from qualifying

Answer: A

Question 2

A financial planner is invited to serve as a paid director of a private corporation owned by one of her clients.The client also wants the planner to continue providing personal financial planning advice. What should theplanner do before accepting the directorship?

A : Accept because board compensation is separate from planning compensation.

B : Accept only if the client verbally confirms there is no conflict.

C : Disclose the proposed outside activity and obtain required approval from her firm.

D : Transfer the client to another planner without documenting the reason.

Answer: C

Question 3

Owen and Lina are looking to purchase a home in the next few months. Owen is the primary income earnerfor the family. His credit history is weak with several recently paid collections Lina has a perfect credit recordbut limited income and irregular employment. What will their financial planner advise them about the impacttheir credit ratings will have on their ability to secure a mortgage?

A : The primary income earner must have a minimum credit score to qualify

B : Since Owen's collections are paid, they would be able to qualify

C : Lina's strong credit rating will make up for Owen's credit history

D : Lina's low income will prevent them from qualifying

Answer: A

Question 4

Ivan has been relocated to a new office by his employer and is considering moving to a home closer to hisnew workplace. What is the minimum distance Ivan will have to move in order to qualify for the work-relatedmoving expenses income tax deduction?

A : 60 kilometers.

B : 15 kilometers.

C : 25 kilometers.

D : 40 kilometers.

Answer: D

Question 5

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

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.

Answer: B