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 13, 2026

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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

During training, an RNN model used for forecasting exhibits extremely high gradients at certain steps, causing instability in learning. Which of the following best describes this problem?

A : Vanishing gradient

B : Exploding gradient

C : Overfitting

D : Gradient clipping

Answer: B

Question 3

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

Question 4

A justice system uses an AI model to predict failure-to-appear (FTA) rates in court. To ensure fairness without explicitly using protected group data, what could be a potential unintended outcome?

A : The model underestimates FTA for all demographics

B : The model’s accuracy decreases for high-risk groups

C : The model’s reliance on correlated variables increases potential bias in predictions

D : The model achieves demographic parity but lacks predictive accuracy

Answer: C

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: Mar 13, 2026

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