Free GARP RAI Exam Questions

Become GARP Certified with updated RAI exam questions and correct answers

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Total 330 Questions | Updated On: Mar 20, 2026

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Question 1

A financial institution is creating a model inventory. Which of the following should be included to ensure comprehensive governance?

A : Only the model’s purpose and validation report.

B : Model owner, but not developer information, for clarity.

C : A description of model assumptions but not its risk classification.

D : Model owner, purpose, methodology, assumptions, limitations, and risk tier.

Answer: D

Question 2

A bank is developing its model risk governance framework to address ML/AI models. What foundational approach should the bank take?

A : Create an entirely new framework specific to AI/ML.

B : Build upon its existing model risk framework while adapting to new challenges from AI/ML.

C : Exclude traditional models from the risk framework.

D : Focus solely on AI/ML ethical aspects without considering statistical issues.

Answer: B

Question 3

An admissions committee decides to incorporate a measure of resilience alongside grades in its AI-based selection criteria. Which challenge is the committee likely to face with this approach to individual fairnes

A : Defining resilience as a measurable trait

B : Avoiding direct discrimination

C : Ensuring grades remain the sole basis for admissions

D : Guaranteeing equal admissions for all applicants

Answer: A

Question 4

During training, an RNN model used for forecasting exhibits extremely high gradients at certain steps, causing instability in learning. Which of the following best describes this problem?

A : Vanishing gradient

B : Exploding gradient

C : Overfitting

D : Gradient clipping

Answer: B

Question 5

Which of the following scenarios represents a binary classification problem?

A : Predicting the probability of different stock prices

B : Forecasting next month’s sales in dollars

C : Determining if a transaction is fraudulent or legitimate

D : Grouping customers into three income tiers

Answer: C

Page: 1 / 66

Total 330 Questions | Updated On: Mar 20, 2026

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