Free GARP FRM Part II Practice Questions

GARP FRM Part II covers Market Risk, Credit Risk, Operational Risk and Resilience, Liquidity and Treasury Risk, Investment Management, and Current Issues. Backtesting VaR, FRTB, copulas, xVA, Basel III, and stress testing — applied risk-manager perspective throughout.

511 Questions
6 Topics
3 Difficulty Levels
2026 Syllabus
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Others charge $1,000+. FreeFellow gives you the 70% you need to pass for free.

The full question bank, written solutions, lessons, formula sheet, mixed practice, and readiness tracking for your FRM Part II prep are free forever. No trial period, no credit card. Every lesson ships with AI-narrated audio, and every constructed-response item has a copy-to-AI prompt builder for your own ChatGPT or Claude. Become a Fellow ($59/qtr) only if you want mock exams, flashcards, analytics, AI essay grading, and a personalized study plan.

Everything You Need to Pass

The free tier covers what most candidates need to pass. Fellow ($59/qtr) adds the pacing tools.

511+ Practice QuestionsFREE
Every question includes a detailed, step-by-step solution.
Mixed PracticeFREE
Cross-topic sessions to keep recall sharp.
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Structured prompts you paste into your own ChatGPT or Claude for self-graded essay feedback.
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Full-length practice exams weighted to the real blueprint.
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Instant AI-graded feedback on constructed-response essays using the official rubric.
Performance AnalyticsFELLOW
Topic-by-topic mastery breakdown with difficulty mix.
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Adapts to your exam date and weakest topics.

What's Free — and What Fellow Unlocks

The 70% of FRM Part II prep you actually need to pass — questions, solutions, lessons, mixed practice, AI-narrated audio, copy-to-AI essay prompts — is free forever. The remaining 30% (mocks, flashcards, analytics, study plan, AI essay grading) unlocks when you become a Fellow. Use the free tier as long as you like.

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  • Copy-to-AI essay prompts for your own ChatGPT or Claude
  • Mixed practice sessions across all topics
  • Formula sheet and reference materials
  • Readiness tracking with pass-probability estimates
  • No paywalls on questions · no trial period · no credit card
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  • Timed mock exams with weighted scoring
  • Flashcards (SM-2 spaced repetition)
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  • Personalized study plan that adapts to your exam date

Sample Questions

Question 1 Easy
The Basel III Net Stable Funding Ratio (NSFR) is designed primarily to:
Solution
C is correct. The NSFR equals Available Stable Funding (ASF) divided by Required Stable Funding (RSF) and must be at least 100%. ASF weights liability and equity sources by their stability over a one-year horizon, while RSF weights assets and off-balance-sheet items by their liquidity characteristics. The ratio's purpose is to ensure that long-dated, illiquid assets are funded with reasonably stable liabilities over a one-year period, addressing structural maturity mismatches that the LCR's 30-day horizon does not capture.
Question 2 Medium
A portfolio has 100 daily P&L observations. The five worst daily P&L values (in $ millions) are: -10, -8, -7, -6, and -5. What is the 1-day 95% Expected Shortfall (ES)?
Solution
C is correct. Expected Shortfall at 95% confidence is the conditional average loss in the worst 5% tail. With 100 observations, the 5% tail contains the five worst losses: 10, 8, 7, 6, 5 ($M). ES=(10+8+7+6+5)/5=36/5=7.2\text{ES} = (10 + 8 + 7 + 6 + 5)/5 = 36/5 = 7.2. The 1-day 95% ES is $7.2M.
Question 3 Hard
A portfolio's daily P&L is normally distributed with zero mean. The one-day 95% parametric VaR is $1 million. Using z0.95=1.645z_{0.95} = 1.645, z0.99=2.326z_{0.99} = 2.326, and assuming square-root-of-time scaling, the 10-day 99% expected shortfall is closest to:
Solution
A is correct. First back out the dollar standard deviation from the given 95% VaR: σV=$1,000,000/1.645=$607,903\sigma V = \$1{,}000{,}000 / 1.645 = \$607{,}903. Next, the daily 99% expected shortfall multiplier under normality is ϕ(z0.99)/(10.99)=0.02665/0.012.665\phi(z_{0.99})/(1-0.99) = 0.02665/0.01 \approx 2.665, where ϕ\phi is the standard normal density. Then daily 99% ES =2.665×$607,903$1,620,000= 2.665 \times \$607{,}903 \approx \$1{,}620{,}000. Scaling to a 10-day horizon by 103.162\sqrt{10} \approx 3.162 gives $1,620,000×3.162$5.12\$1{,}620{,}000 \times 3.162 \approx \$5.12 million.

Topics

📚 FRM Part II Glossary (34 Terms)

Frequently Asked Questions

How many free FRM Part II practice questions does FreeFellow have?
FreeFellow currently offers 511 free FRM Part II practice questions across 6 topics, each with a detailed step-by-step solution. Questions span three difficulty levels and are aligned to the 2026 syllabus. The question bank is updated regularly.
What FRM Part II topics are covered?
The questions cover 6 topics: Market Risk, Credit Risk, Operational Risk and Resilience, Liquidity and Treasury Risk, Risk and Investment Management, Current Issues in Financial Markets. Each topic page shows your progress and lets you filter by difficulty level. You can practice by topic to target your weak areas or take mixed-topic practice exams.
Is FreeFellow really free for FRM Part II prep, or is there a catch?
No catch. The 70% of FRM Part II prep you actually need to pass is free forever: the full question bank of 511 practice questions, detailed solutions on every question, mixed practice, the formula sheet, and readiness tracking. No trial period, no credit card. The remaining 30% (timed mock exams, flashcards with spaced repetition, performance analytics, and a personalized study plan) unlocks when you become a Fellow.
What does the $59 Fellow tier unlock for FRM Part II?
Fellow ($59 per quarter or $149 per year, per track) unlocks four things on top of the free tier: timed mock exams with weighted scoring that match the real exam blueprint, flashcards using SM-2 spaced repetition, topic-level practice to drill weak areas, performance analytics broken down by topic and difficulty, and a personalized study plan that adapts to your exam date. Everything else — questions, solutions, lessons — stays free.
How does FreeFellow compare to Bionic Turtle, AnalystPrep, or Kaplan Schweser on price?
Traditional FRM Part II prep providers charge $200 to $3,500 for a single exam, paid upfront. FreeFellow keeps the question bank, written solutions, and lessons free forever. The optional Fellow tier is $59 per quarter (about 1/20th of what the big providers charge) and adds mock exams, flashcards, analytics, and a study plan. You can pass FRM Part II entirely on the free tier.
How should I use FreeFellow to study for FRM Part II?
Start with topic-based practice to identify weak areas. As your exam date approaches, switch to timed practice exams under realistic conditions. The free tier gives you everything you need to build mastery; if you want pacing tools (mock exams, analytics, a study plan) and long-term retention aids (spaced-repetition flashcards), become a Fellow.
What is the FRM Part II pass rate?
The FRM Part II pass rate has historically averaged around 55-60%, based on GARP-published statistics. Part II candidates have already passed Part I, so the population is more selective and the pass rate runs higher than Part I.
What is the format of FRM Part II?
FRM Part II is a 4-hour, 80-question multiple-choice exam covering Market Risk, Credit Risk, Operational Risk and Resilience, Liquidity and Treasury Risk, Risk and Investment Management, and Current Issues in Financial Markets. It is offered three times per year (May, August, November) and must be passed within four years of passing Part I.
How many parts is the FRM exam?
The FRM (Financial Risk Manager) certification consists of two parts: Part I and Part II. Both are administered by GARP (Global Association of Risk Professionals). Candidates must pass both parts within four years and complete two years of qualifying risk-related work experience to earn the FRM designation.
What is FreeFellow's relationship with GARP?
FreeFellow is not affiliated with, endorsed by, promoted by, reviewed by, or warranted by GARP. FreeFellow questions and lessons supplement the official GARP curriculum but are not a replacement for it. Candidates should consult GARP-published reading lists for the authoritative source material.
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About FreeFellow

FreeFellow is an AI-native exam prep platform for actuarial (SOA & CAS), CFA, CFP, CPA, CAIA, and securities licensing candidates — built around modern AI as a core capability rather than as a bolt-on. Every lesson ships with AI-narrated audio. Every constructed-response item has a copy-to-AI prompt builder so candidates can paste their answer into their own ChatGPT or Claude for self-graded feedback. Fellow members get instant AI grading on essays against the official rubric (currently CFA Level III, expanding to other essay-bearing sections).

The 70% you need to pass — question bank, written solutions, lessons, formula sheet, mixed practice, readiness tracking — is free forever, with no trial period and no credit card. Become a Fellow ($59/quarter or $149/year per track) to unlock mock exams, flashcards with spaced repetition, performance analytics, AI essay grading, and a personalized study plan.