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 08, 2025

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Question 1

A tech firm is developing a model to predict credit risk and wants to reduce testing bias while still evaluating performance. Which approach should it use?

A : Conduct black-box testing to assess functionality without internal bias.

B : Focus solely on white-box testing for thorough code analysis.

C : Rely on artificial test cases for full test coverage.

D : Avoid testing until after model deployment to prevent interruptions.

Answer: A

Question 2

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 3

A company wants to apply reinforcement learning to manage its warehouse inventory, learning when to restock based on demand fluctuations. What is a potential drawback of using reinforcement learning in this scenario?

A : It cannot adapt to new demand patterns over time.

B : It requires high amounts of labeled data for training.

C : It may initially perform poorly as it learns from trial-and-error.

D : It only works for supervised learning tasks.

Answer: C

Question 4

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 5

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

Page: 1 / 66

Total 330 Questions | Updated On: Dec 08, 2025

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