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 tech firm is evaluating different models for an NLP project requiring high computational efficiency and parallel processing. Why might transformers be more suitable than RNNs for this task?

A : They use contextual embeddings

B : They are sequence-dependent

C : They allow for parallel processing

D : They rely on sequence ordering

Answer: C

Question 2

A financial institution is developing a credit risk model using a machine learning algorithm. The data science team decides to split their dataset into three parts: training, validation, and test sets. What is the primary purpose of the validation set in this setup?

A : To finalize the model by evaluating it on unseen data

B : To select the best performing model among multiple algorithms

C : To adjust model parameters to fit the training data

D : To test the model’s performance under different scenarios

Answer: B

Question 3

During an NLS optimization, the analyst uses a gradient descent algorithm to update model parameters. If the improvement in the objective function falls below a certain threshold, the optimization process stops. What is the purpose of this threshold in NLS optimization?

A : To avoid overfitting by stopping after a set number of steps

B : To ensure convergence to the exact global minimum

C : To prevent unnecessary computations when further improvement is minimal

D : To improve model interpretability by limiting parameter updates

Answer: C

Question 4

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

Question 5

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

Page: 1 / 66

Total 330 Questions | Updated On: Dec 16, 2025

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