Free GARP FRM-Part-1 Exam Questions

Become GARP Certified with updated FRM-Part-1 exam questions and correct answers

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Total 533 Questions | Updated On: Jan 14, 2026

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Question 1

A bank has entered into a 3 x 6 forward rate agreement to receive a xed rate of 3.35 percent on $12 million in six months. If the applicable rate in three months is 3.62 percent, the cash ow associated with this forward rate agreement for the bank would be closest to:

A : $16,200.

B : −$32,400.

C : −$8,100.

D : $32,400.

Answer: C

Question 2

One of the basic requirements of a risk control process that a risk and control selfassessment program (RCSA) fails in is the:

A : expert opinion of managers.

B : ongoing assessment of the e ectiveness of risk management activities.

C : independent veri cation of risk identi cation and measurement.

D : identi cation of expected losses.

Answer: C

Question 3

Portfolio A has total assets of $14 million and an expected return of 12.50 percent. Historical VAR of the portfolio at 5 percent probability level is $2,400,000. What is the portfolio's standard deviation?

A : 14.65%.

B : 15.75%.

C : 12.50%.

D : 17.97%.

Answer: D

Question 4

An analyst is choosing between two machine learning models. Which of the following datasets will the analyst most likely use to make the determination of which model to select?

A : Validation set.

B : Training set.

C : Test set.

D : Variance set.

Answer: A

Question 5

Sue Johnson, FRM, has an elderly client with a very large asset base. The client intends to start divesting her fortune to various charities. Johnson is on the Board of a local charitable foundation. Johnson most appropriately:

A : should solicit the client herself, along with other Board members, to obtain a larger contribution.

B : can discuss her client's situation with the charitable foundation as long as she informs other local charities of her client's intentions.

C : must not discuss anything regarding her client and her client's intentions with the charitable foundation without permission.

D : can make this known to the charitable foundation so that they can solicit the client, since it is the client's wish to divest assets to charities in the future.

Answer: C

Page: 1 / 107

Total 533 Questions | Updated On: Jan 14, 2026

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