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 08, 2026

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Question 1

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 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 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 4

A government agency uses an AI system to determine eligibility for welfare benefits but faces public concerns about fairness due to its black-box nature. What is the best step to increase transparency?

A : Provide simplified output without explanation

B : Implement model-agnostic interpretability techniques

C : Replace the system with manual processing

D : Use the system without public disclosure

Answer: B

Question 5

What is a primary reason to remove duplicate observations during data cleaning?

A : To improve data storage efficiency

B : To avoid biases in analysis

C : To handle missing data effectively

D : To address inconsistent recording

Answer: B

Page: 1 / 66

Total 330 Questions | Updated On: Mar 08, 2026

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