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: Apr 14, 2026

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Question 1

A game developer uses a multi-arm bandit model to recommend different in-game offers to players. The model tracks which offers players respond to and adjusts future recommendations accordingly. In MAB terms, what is the purpose of the "policy" in this context?

A : To measure player engagement levels

B : To maximize expected future rewards by recommending the best offers

C : To randomly assign offers to players without any learning

D : To ensure a fixed sequence of offers is presented to each player

Answer: B

Question 2

A risk manager is evaluating an NLP-based sentiment analysis model that uses dictionary approaches across multiple datasets. He notices inconsistent results when analyzing different document types. What could explain this inconsistency?

A : The dictionary approach is ineffective for NLP applications

B : The dictionary approach requires separate datasets for each document

C : The dictionary's effectiveness is limited by the document type and language style

D : The dictionary approach is too complex for real-world use

Answer: C

Question 3

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 4

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 5

An investment firm is setting up its model risk management framework. Who is primarily responsible for approving or rejecting models based on validation results?

A : Model developers

B : Internal auditors

C : Senior management

D : Model validators

Answer: C

Page: 1 / 66

Total 330 Questions | Updated On: Apr 14, 2026

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