Canadian Securities Institute AFP Questions and Answers

Question 6 of 103

Rana is meeting with her client, Hakeem, age 52, who is retired. His financial information is as follows:

Hakeem is not concerned with paying higher taxes before age 65 to be able to get maximum government benefits after age 65. What strategy should Rana recommend to Hakeem?

A.

Systematically liquidate all his RRSP by age 65.

B.

Maximize his RRSP contribution every year.

C.

Maximize his TFSA contribution every year.

D.

Systematically liquidate all his TFSA by age 65.

Question 7 of 103

Goran, a financial planner is meeting with a new prospect Marlene. After assessing her risk profile Goran determines an appropriate asset allocation would be cash at 5%, fixed income at 35% and equity at 60% Marlene's current statement shows her RRSP account breakdown as follows:

What advice should Goran give to Marlene with respect to her account aligning to her overall circumstance?

A.

Sell $91,100 of the EGY equity fund and contribute towards the CDE bond fund and 90-day T-bill

B.

Sell $66,000 of the EGY equity fund and contribute towards the CDE bond fund and 90-day T-bill

C.

Sell a portion of each holding to re-balance towards the acceptable range for asset allocation

D.

The current portfolio is within the acceptable range for asset allocation

Question 8 of 103

Hans reviews his insurance coverage with his wealth advisor, Esther. As part of his risk management strategy, Hans wants to maximize disability and life coverage. Esther proposes that Hans include a survivorship provision in his new own-occupation disability policy. How would this provision benefit Hans’ beneficiary if he passes away while receiving disability payments?

A.

The survivor would continue to earn disability payments for two years based on the own-occupation feature, provided the survivor earns no employment income during this period.

B.

A lump-sum benefit will be payable to the survivor worth several times the value of disability payments and payments will cease.

C.

Disability payments would continue until the survivor reaches age 65.

D.

Disability payments would continue to the survivor for a fixed term.

Question 9 of 103

Harley is a novice investor who has just set up his first FHSA. He has a high-risk tolerance to market volatility and his primary investment objective is growth. He would like to invest $10,000 and will use the funds as part of the first-time home buyers plan within the next year. What investment should Harley purchase within this FHSA?

A.

A one year locked-in GIC.

B.

A high interest savings account.

C.

An equity focused mutual fund.

D.

An income-focused mutual fund.

Question 10 of 103

Morty's clients, Rayan and Shelly, divorced 12 months ago. Today, Morty is meeting with Rayan to update his financial plan. Morty has asked for information such as Rayan's current income and a list of his assets. Rayan is hesitant to provide this information as he knows Shelly is also still a client and he is concerned it could be disclosed to her. How should Morty respond to Rayan's concerns?

A.

Ask Rayan to find another financial planner with whom he would be more comfortable working.

B.

Provide Rayan with a copy of the firm's pamphlet on protecting personal information.

C.

Move forward without the information to make Rayan feel more comfortable.

D.

Inform Rayan why the information is required and how it will be protected.