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

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 2

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 3

A retail bank uses self-training to classify loan applicants as high or low risk, but it finds that updating the model after each new labeled data point is computationally intensive. Which approach can the bank use to reduce this burden?

A : Select multiple best-predicted instances in each round

B : Use an unsupervised learning model instead

C : Increase the complexity of the initial model

D : Use transductive learning instead

Answer: A

Question 4

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 5

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

Page: 1 / 66

Total 330 Questions | Updated On: Dec 16, 2025

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