FRM Part 1 practice by topic

• Valuation and Risk Models — 188 free questions
• Financial Markets and Products — 154 free questions
• Quantitative Analysis — 115 free questions
• Foundations of Risk Management — 100 free questions

How do I study for FRM Part 1?

The exam is quantitative at its core — derivative pricing, VaR, duration, statistical foundations. Work problems daily rather than re-reading notes: KomFi gives you 2,379 FRM-style practice questions with step-by-step derivations, plus formula flashcards for retention.

How hard is FRM Part 1?

Pass rates typically sit between 40–50%. The candidates who pass treat it as a problem-solving exam, not a reading exam — volume of worked questions is the single strongest predictor.

Where can I practice FRM questions for free?

KomFi publishes free FRM Part 1 practice questions here. KomFi Basic includes 50 questions per month, explanations with derivations, introductory flashcards, and progress tracking. KomFi Pro unlocks the full bank, full flashcard deck, and unlimited mock exams. KomFi is independent and not endorsed by GARP; FRM® is a registered trademark of GARP.

Free FRM Part 1 practice questions

1. If the oil market shifts from backwardation to a persistent contango, which of the following best describes th
2. If at the time of delivery S_1 = $72 and F_1 = $74, while the hedge was entered at F_0 = $78, what is the basi
3. According to the standard 'Default Waterfall' of a Central Counterparty (CCP), which layer of financial resour
4. A 'Fallen Angel' is a term used in the bond market to describe:
5. A 'long' position in which of the following provides insurance against a rise in prices?
6. An American put option is deep in the money. Why might it be optimal to exercise this option early?
7. If at maturity the futures price were significantly higher than the spot price, what would occur?
8. How is the 'swap rate' typically determined at the inception of an interest-rate swap?
9. If a 2-year swap has annual resets and the current 1-year and 2-year zero rates are 3% and 4%, why might the 2
10. If a clearinghouse uses its own 'skin in the game' to cover a default, where does this typically sit in the de
11. Immediately following a reset date (and the subsequent payment), what is the value of the floating-rate leg (B
12. In a clearinghouse structure, multilateral netting allows for:
13. In an exchange-traded gold futures contract, if the account balance falls below the 'Maintenance Margin' level
14. In a plain-vanilla interest-rate swap, which of the following best describes the fundamental exchange occurrin
15. In the context of derivative markets, what does the term 'counterparty credit risk' specifically refer to for
16. In the standard credit rating hierarchy used by major agencies, which of the following ratings represents the
17. Why is it NOT considered a down payment?
18. The variation margin is the cash amount that is:
19. What happens if a futures trader fails to meet a variation margin call in a timely manner?
20. What is a major disadvantage of an OTC forward for a participant who needs to exit their position early?
21. What is the maximum possible loss for an investor who writes (shorts) a naked call option?
22. What is the primary reason why time value is greatest for an at-the-money (ATM) option?
23. What is the primary risk associated with 'Point-in-Time' (PIT) ratings when used for determining regulatory ca
24. What is the put's price, and what would happen if the put traded at $2.00?
25. If the basis (Spot - Futures) 'strengthens' (becomes more positive), what is the outcome for the hedger?