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: Jan 05, 2026

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Question 1

Which term best describes a dataset that includes a mix of organized, structured financial data and unstructured text data from customer reviews?

A : Structured data

B : Unstructured data

C : Semi-structured data

D : Binary data

Answer: C

Question 2

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 3

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 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

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

Page: 1 / 66

Total 330 Questions | Updated On: Jan 05, 2026

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