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: Dec 16, 2025

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Question 1

A financial institution is implementing an AI model that uses proxies for loan approval decisions. Which of the following is a potential risk associated with using proxies?

A : Proxies might result in simplified metrics that don’t align with the actual objective.

B : Proxies require extensive computational resources.

C : Proxies ensure a direct alignment with the model’s intended objective.

D : Proxies make the model fully explainable to external auditors.

Answer: A

Question 2

In an effort to understand why certain loan applications were denied, a bank deploys LIME (local interpretable model-agnostic explanations). What is the primary advantage of using LIME?

A : LIME trains a new model for each decision made by the AI

B : LIME provides an approximate explanation of a complex model’s behavior in a local context

C : LIME permanently alters the original model to make it interpretable

D : LIME identifies the most accurate model among several candidates

Answer: B

Question 3

A Board of Directors at a global tech firm is considering developing a data-collection AI that could enhance user experience but involves intrusive tracking. According to rule consequentialism, how should they decide?

A : Approve the AI if it increases company revenue and shareholder value

B : Approve the AI if it adheres to rules that generally maximize trust and benefit users

C : Reject the AI if it does not comply with all regional data privacy laws

D : Reject the AI as it could potentially reduce the number of future data projects

Answer: B

Question 4

In an effort to understand why certain loan applications were denied, a bank deploys LIME (local interpretable model-agnostic explanations). What is the primary advantage of using LIME?

A : LIME trains a new model for each decision made by the AI

B : LIME provides an approximate explanation of a complex model’s behavior in a local context

C : LIME permanently alters the original model to make it interpretable

D : LIME identifies the most accurate model among several candidates

Answer: B

Question 5

Which type of risk might an organization face if an AI algorithm breaches individual privacy or yields biased results?

A : Existential risk

B : Operational risk

C : Reputational and regulatory risk

D : Environmental risk

Answer: C

Page: 1 / 66

Total 330 Questions | Updated On: Dec 16, 2025

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