Financial Risk Manager (FRM®) 1 – Question Bank

FRM 1 Question Bank for effective preparedness

Anyone who has sat for the FRM Exams will attest to the fact that a key aspect of passing is examination technique.

Africa Risk Management Advisors (ARMA) has a good track record for preparing students for the examination.

We have used the experience of our qualified trainers as well as students to develop the most comprehensive database of questions that will help any student from anywhere across the globe adequately prepare for the exams.

Our QBank simulates the final exam and gives students the workings for each question.


If you finish either session before the end of the allotted time, you may leave the testing room, but only after you have handed in all your Exam materials to the proctor. No one may leave during the last 30 minutes of either Exam session. Once you leave the testing room after completing a session, you may not return. Note: Should you leave the testing room and inadvertently take the Exam materials with you, your Exam will not be graded. This is a violation of GARP's testing policies.
All Exam materials, including the Exam booklets, answer sheets, and admission tickets are the sole property of GARP. Completed Exams will not be returned or shared partially or fully with candidates. Your Exam materials must be given to the Proctor prior to leaving the Exam room for any reason, including trips to the restroom.
Should you have any other miscellaneous items such as those listed below, please notify the room supervisors and he or she will direct you to place those items in a designated area away from the Exam room. You will not have access to these items during the Exam, but may access them during lunch or at the conclusion of the Exam. Any personal writing instruments, erasers, highlighters or rulers. Personal accessories such as watches or cufflinks Any type of digital technology: iPhones, Androids, BlackBerrys, pages, portable clocks, cameras, or any other electronic devices of any kind Any wearable technology: Google glasses, smart watches, fit-bits, etc. Baggage of any kind: backpacks, handbags, tote bags, briefcases, laptops luggage, or pencil cases Any type of study material(s); including notes, papers, textbooks, study guides, scratch paper, present/future value tables or calculator manuals Tobacco products Please note: Neither GARP, the Exam site, Exam personnel, or vendors will assume responsibility or liability for any stolen, lost, or damaged personal property left at the Exam site.
A candidate may bring one (1) cellular phone into the exam room. It must be turned completely off (airplane mode is not sufficient) and placed facedown under the candidate's seat. If a candidate's cellular phone emits any type of noise (e.g., ring, beep, etc.) during the Exam, the candidate will not be allowed to continue with the Exam, the candidate's answer sheet will be collected (and will not be graded) and the proctor will escort the candidate from the exam room. This will apply if the cellular phone is in the exam room or in the designated personal belonging area.
- Wallet (money purse) - Calculator batteries, eye-glasses, earplugs. - Medicine, tissues, and other medically necessary items. - Food and drinks. All food and drinks must be consumed outside the testing room.
Proctors and security personnel may ask to inspect your belongings at check-in to ensure that prohibited items are not carried into the Exam room.
1:00 pm Candidates may begin to check in 1:45 pm Doors close promptly. No late candidate will be permitted to enter. 1:46 pm Once the doors have closed, the Exam is distributed and Exam instructions are read. 2:00 pm Exam begins 2:30 pm 3.5 hours remaining announcement is made 3:00 pm 3 hours remaining announcement is made 3:30 pm 2.5 hours remaining announcement is made 4:00 pm 2 hours remaining announcement is made 4:30 pm 1.5 hours remaining announcement is made 5:00 pm 1 hour remaining announcement is made 5:30 pm 30 minutes remaining announcement is made 5:55 pm 5 minutes remaining announcement is made 6:00 pm Exam is over, materials are collected, and candidates are released. Note: Some Exam sites may have a different start time. Please be sure to check your admission ticket.
7:00 am Candidates may begin to check in 7:45 am Doors close promptly. No late candidate will be permitted to enter. 7:46 am Once the doors have closed, the Exam is distributed and Exam instructions are read. 8:00 am Exam begins 8:30 am 3.5 hours remaining announcement is made 9:00 am 3 hours remaining announcement is made 9:30 am 2.5 hours remaining announcement is made 10:00 am 2 hours remaining announcement is made 10:30 am 1.5 hours remaining announcement is made 11:00 am 1 hour remaining announcement is made 11:30 am 30 minutes remaining announcement is made 11:55 am 5 minutes remaining announcement is made 12:00 pm Exam is over, materials are collected, and candidates are released.
Once the Exam doors have closed, for the morning or afternoon session, candidates are not allowed to enter and sit for the Exam. There are no exceptions to this rule.
Only the following items are allowed to be on your desk during the Exam: A PRINTED admission ticket An original non-expired government issued passport or driver’s license including photograph. A GARP approved calculator(s) There is no need to bring any writing instruments. Pencils will be provided by GARP. These will be on your desk when you arrive (please take them home)!
Yes. Candidates should not expect to gain admission to the Exam via a smartphone that contains an electronic copy of their Admission Ticket. A paper Admission Ticket is required for entry to the Exam. There are no exceptions to this.
As a candidate for the Exam you are expected to be familiar with the Exam site and arrive at least one hour before the Exam is set to begin. Be prepared to present an original, non-expired passport or driver’s license for admission. The name on your admission ticket needs to exactly match the name on your passport or driver’s license. If it currently does not match, please contact member services before the Exam! You will need to bring a PRINTED admission ticket. The doors will close promptly at 7:45 am and 1:45 pm, respectively. They cannot be opened for candidates that arrive late, no matter what may have happened. Some parts of the world may have a different start time, so be sure to read your admission ticket!
The candidate responsibility statement is an ethical oath required by all FRM Candidates. Please find a copy of it below: I understand, accept, and agree to comply with all conditions, requirements, policies, and procedures for the FRM Exam established by GARP, and as amended from time to time. I understand that such conditions, requirements, policies, and procedures include all material set forth on the GARP website for this year's Exam, as well as policies and procedures that may be established and amended from time to time, information about which is available by contacting GARP on this website or through GARP communications with FRM candidates. I understand that GARP has the authority to enforce its conditions, requirements, policies, and procedures against me by rejecting, suspending, or terminating my FRM candidacy at any time or, following due process, declining to award me the right to use the FRM designation, for my failure to satisfactorily adhere to the conditions, requirements, policies, and procedures or to comply with GARP’s Code of Conduct. I understand that all registration fees are nonrefundable and nontransferable. I represent that the information contained in my application and Candidate Responsibility Statement is truthful and complete. I agree to notify GARP of any material changes to my responses to any of the questions on my application, including my current address. I have read and understand all the "Exam Policies" before finalizing my registration for this Exam. I have reviewed my application, and everything I have stated is true. By electronically transmitting this application, I indicate my agreement with each of the terms and conditions. I understand that I will be bound by the Candidate Responsibility Statement and GARP's Code of Conduct.
GARP seriously reviews every Exam Incident Report filed on exam day. The following are a few of the incidents that have resulted in a candidate’s Exam not being graded: Arriving after the doors have closed - Arriving with invalid identification - Bringing in and using a non-GARP-issued writing instrument or highlighter during the Exam - Bringing in and using an eraser, white-out, correction fluid/tape, highlighters, or rulers - Cellular device ringing in the exam room - Bringing in wearable technology devices such as Google glasses, watches, smart-watches, fit-bits, or portable clocks - Bringing in and using an unauthorized calculator - Opening an exam booklet before instructed to do so - Writing before instructed to do so - Using unauthorized materials (such as paper or crib notes) - Looking at another candidate’s answer sheet or Exam booklet - Speaking with another candidate during the timed portion of the Exam - Exiting and re-entering the building during the timed portion of the Exam - Exiting the room during last 30 minutes of exam - Removing exam materials from the room - Continuing to write after “STOP WRITING” has been announced - Displaying disruptive behavior
A current, original, and not expired government issued passport or driver's license is accepted. The name on your admission ticket must match exactly what you will present on Exam day. The passport or driver's license must include a photograph of the candidate - photocopies are not acceptable. There are NO exceptions to this policy, regardless of what form of identification a candidate may have used in past Exam administrations. If a candidate arrives on Exam day without a valid passport or driver's license, they will not be allowed to sit for the Exam. GARP administers its exams in approximately 90 locations in more than 50 countries. Because all of the different forms of identification that are used worldwide, which differ greatly from country to country and from culture to culture, we cannot list all forms of identification that are not acceptable. We require that all candidates must abide by this same rule, worldwide. Additionally, GARP will not accept work/employer identification cards, voter's identification cards, a learner's permit, student ID cards, PAN card, or national ID cards. A Special Note: If a driver's license is used for admission, it can only be used in the country of origin; otherwise, you must arrive with a valid passport.
Yes. If you registered and PAID for the FRM Exam and later deferred your registration to the next administration and now wish to re-enroll in the current administration, there is a US$150 fee to change your deferral status.
candidate can defer their Exam registration once to the next administration. Once the deferral deadline has passed, requests for late deferrals will not be considered, nor will second deferral requests. The deadlines are as follows: May Administration – April 15, 2020 November Administration – October 15, 2020 Important Notes about Deferrals: There is a $150 administrative processing fee to defer. As a deferred candidate you will automatically be re-enrolled in the next Exam. If you have deferred and still attend the Exam, the deferral fee will not be refunded. If a candidate defers their FRM Exam Part II but fails the FRM Exam Part I, the FRM Exam Part II will be converted into a Part I registration, once Exam results have been released. Note: Due to the timeline in which the October 2020 scores will be released, candidates are not permitted to take an exam in October and also take an exam in November. As such, a candidate deferring their October 2020 exam must reach out to GARP at for assistance in moving their exam to May 2021.
A candidate can defer their Exam registration once to the next Exam date. Second deferrals will not be considered. A deferral to the next Exam date must be submitted by the last day of registration. There is a $150 fee to defer. Please log in to your account and go to “My Programs” and click on the deferral button.
Only the following types of business calculators are authorized for use during the Exam. There will be no exceptions to this policy. Should a candidate use a non-authorized calculator at any time during the Exam, a violation report will be written and your answer sheets will not be graded. GARP strictly enforces all policies with regard to calculator usage during the FRM Exam and candidates are required to abide by GARP's policy. Texas Instruments BA II Plus (both versions), including the BA II Plus Professional Hewlett Packard 10B II,10B II+,20B Hewlett Packard 12C (including the HP 12C Platinum and the Anniversary Edition):
Another component of GARP's risk education offerings includes partnerships with various colleges and universities to craft programs that offer rigorous academic instruction aligned with the FRM curriculum. Students who matriculate in such programs can be better prepared to succeed in the challenging field of risk management. More detailed information about GARP's academic partners and the programs they offer can be found on the GARP website.
While GARP does not conduct exam preparation courses, there are third party firms that do provide such services. Please check the GARP website for the most recent list. It should be noted that GARP does not endorse, promote, review, or warrant the accuracy, products, or services offered by Exam Preparation Providers of Exam related information. Nor does it endorse pass rates claimed by an Exam Preparation Provider. Further, GARP is not responsible for any fees or costs paid by the user to an Exam Preparation Provider. GARP provides candidates with this information solely as a service to them.
Students and faculty in GARP Academic Partner programs have exclusive access to scholarships, which cover the FRM or ERP Part I Exam registration fee. Up to six students and one faculty recipient may be nominated by the program administrators each year. For more information please contact Academic Partners page.
Candidates’ preparation times will vary based on their professional experience, academic background, and familiarity with the concepts tested on the curriculum. On average, individuals devoted approximately 240 hours to Exam preparation according to a survey conducted in May 2015 FRM Exam Part I candidates. Individual figures, however, varied from less than 100 hours (10%) to more than 400 hours (14%).
Due to the sizable amount of material covered in the Exam, we suggest that candidates create a weekly study schedule. As such, we have created a 15-Week Study Plan that candidates should use as a framework and customize the plan based on their level of expertise. This is designed to pace the learning materials over an extended period of time.
FRM Part I eBooks are included as part of exam registration (candidates will receive an email explaining eBook access after registering). FRM Part I print books can be purchased on the website. FRM Part II books are not included with registration, but FRM Part II print or eBooks can be purchased on the website GARP has also prepared several materials in order to further assist you in successfully preparing for the FRM Exams, available for free digital download: Practice Exams (free for those registered for the exam) Learning Objectives Study Guide Changes to the Study Guide from the year prior 18-Weekly Study Plan (Study Modules)
No. Candidates cannot transfer a registration to another candidate.
GARP does not provide refunds.
For any manual payments by check or wire there is a US$50 processing fee that will be added to your invoice. Be sure to include your GARP ID, a copy of your invoice, and your signature for approval. Candidates can pay for their Exam registration via the following options: 1. Credit Card Online - GARP accepts MasterCard Visa, or Amex Check 2. Check - Must be a US bank check or a foreign check with a US intermediate bank Wire 3. Wire - Wire instructions can be found on the bottom of your invoice Please mail your invoice and/or payment information to the following address: Attn: Exam Administration Global Association of Risk Professionals 111 Town Square Place, 14th floor Jersey City, NJ 07310 USA Make your check payable to: Global Association of Risk Professionals Note: Only single payments per candidate registration are accepted online. Should a candidate be paying for more than one candidate using any of the above options, please contact us directly at to help you with your multiple registrations.
Exam Enrollment Early Standard Late FRM Exam Part I* $400. $425 $550 $725 FRM Exam Part II N/A. $350 $475 $650 * FRM Part I eBooks are included as part of exam registration
Dates Description Friday, May 01, 2020 Registration Opens Friday, July 31, 2020 Early Registration Ends Monday, August 31, 2020 Standard Registration Ends ADA applications must be received RAD applications must be received** Thursday, October 15, 2020 Registration closes Last day to defer to the next Exam Sunday, November 01, 2020 Admission Tickets released Saturday, November 21, 2020 Exam Day Friday, January 01, 2021 Exam results sent via email **Request for alternative exam date for religious reasons only
Due to concerns surrounding the COVID-19 pandemic, the May 2020 exam has been postponed to October 2020. Dates Description Sunday, December 01, 2019 Registration Opens Wednesday, April 15, 2020 Registration for October 2020 closes Thursday, October 01, 2020 Admission Tickets released Saturday, October 24, 2020 Exam Day Sunday, November 29, 2020 Exam results sent via email **Request for alternative exam date for religious reasons only
In order for your Exam registration to be considered complete, payment must be received by GARP no later than midnight (New York time) on the closing date of each registration period.
GARP may determine it is necessary to close an Exam site due to an evacuation, natural disaster, acts of military, political or government authority, or "Acts of God". Should such a cancellation occur, GARP will make every effort to notify candidates as soon as possible. If we have to change or cancel the Exam at a particular site for any other reasons, GARP will make every effort to provide advance notice and inform the candidates of the new Exam site and/or additional options.
1. Change your Exam site: Log in into your account and go to “My Programs” and click on the button to change your Exam site. Your must have a paid registration in order to change Exam sites. 2. Request a new Exam site: If you would like to request a new Exam site, please email us with your suggestions. Note: The last day to change your Exam site is April 15 (for May Exam) or October 15 (for November Exam), respectively. Note: October sites are only on portal after being registered.
A standard table presenting the values for the cumulative distribution function (CDF) of the standard normal distribution (“z-table”) is provided, as is other relevant information pertaining to the CDFs of other probably distributions (F, chi-square, etc.) where necessary and applicable. Memorization of CDF values is therefore not expected. A list of common abbreviations used throughout the Exam is also provided.
The FRM exam consists of two parts, Part I and Part II, which are both typically offered twice a year on the third Saturday of May and the third Saturday of November. Part I is an equally-weighted 100 question multiple-choice Exam offered in the morning of the Exam day, and Part II is an equally weighted 80 question multiple-choice Exam offered in the afternoon of the Exam day. Both Exams are administered in a paper and pencil format. Part I and Part II each have a maximum allowable time for completion of four hours. It is important to note that Part I and Part II must be passed sequentially. Therefore, while it is possible to sit for both parts of the Exam on the same day, you must receive a passing score on Part I of the Exam before GARP will score your Part II Exam. Most candidates elect to take Part I and Part II on separate Exam administrations. You should also be aware that the Exams are offered in English only; specifically American English. GARP is aware that not every candidate’s native language is American English. In the exam development process, GARP makes every effort to ensure that questions are written in a clear, concise form and avoids the use of colloquialisms or other terms and phrases that might confuse a non-native American English speaker. Another consideration for potential candidates is the quantitative aspect of the subject matter. The level of mathematical difficulty of the Exam is consistent with an advanced undergraduate or introductory graduate level finance course at most universities. It should also be noted that while the FRM Exam is conceptual in nature, you will still need to know important formulas and calculations and how to apply them correctly. Formula sheets are not provided with the Exam. For guidance on which formulas to focus on, please refer to the Learning Objectives and look for any statements that include the words ‘calculate,’ ‘compute’ or ‘derive.’ These words will generally indicate an associated formula to commit to memory.
Candidates can register online by clicking here -!/public_registration/frm
There are no educational or professional prerequisites needed to register.
Once a candidate passes the FRM Exam Part I, he/she must then pass the FRM Exam Part II within 4 years. Candidates have 5 years from the date they sat and passed the FRM Exam Part II to have their work experience verified.
The FRM Exam Part I focuses on the tools used to assess financial risk. They include: Foundations of risk management concepts Quantitative analysis Financial markets and products Valuation and risk models
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Enrolled: 52 students
Duration: 240 hours
Level: Advanced


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Monday 9:30 am - 6.00 pm
Tuesday 9:30 am - 6.00 pm
Wednesday 9:30 am - 6.00 pm
Thursday 9:30 am - 6.00 pm
Friday 9:30 am - 5.00 pm
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Financial Risk Manager (FRM®) 1 – Question Bank