Understand Regulatory Frameworks CY0-001 Practice Questions (Page 4)

Questions 16–20

1. 16foundation · easy

   How does the EU's approach to AI regulation, such as the AI Act, differ from the US approach?

   • AThe EU prohibits all AI use, while the US encourages all AI use without any oversight
   • BBoth regions have identical AI regulations with no differences
   • CThe EU uses a comprehensive, risk-based regulatory framework, while the US relies more on sector-specific guidelines and voluntary standards
   • DThe US has a single federal AI law, while the EU has no AI-specific regulation
   Reveal Solution Discussion Select an answer first
2. 17foundation · easy

   Why is a regulatory framework important for AI governance?

   • AIt guarantees that AI systems will be profitable for all organizations
   • BIt provides a common baseline for compliance, helping organizations manage risks and build trust with stakeholders
   • CIt eliminates the need for organizations to conduct their own risk assessments
   • DIt ensures that all AI systems are developed using the same programming languages
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4. 18foundation · easy

   What is the primary purpose of a regulatory framework in the context of AI governance?

   • ATo provide a structured set of rules, guidelines, and standards that organizations follow to ensure AI systems are developed and used responsibly
   • BTo replace all internal company policies with a single universal set of technical specifications
   • CTo eliminate all risks associated with AI by prohibiting the use of certain algorithms
   • DTo guarantee that AI systems will always make ethical decisions without human oversight
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5. 19foundation · easy

   Which regulatory framework is primarily concerned with protecting the privacy and security of health information in the United States?

   • ACCPA (California Consumer Privacy Act)
   • BGDPR (General Data Protection Regulation)
   • CFERPA (Family Educational Rights and Privacy Act)
   • DHIPAA (Health Insurance Portability and Accountability Act)
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6. 20expert · hard

   A compliance team at a multinational AI company is tracking regulatory developments. The company operates in the EU, the US, and China. The team has noticed that the EU AI Act is being finalized, the US is considering state-level AI laws, and China has implemented the PIPL. Which approach best ensures the company remains compliant with evolving regulations?

   • ARely on the legal team to interpret regulations without a formal compliance framework.
   • BImplement a single global compliance framework based on the most restrictive regulation (EU AI Act) and apply it to all operations.
   • CMonitor regulatory updates in each jurisdiction and adapt the compliance framework accordingly, prioritizing high-risk operations.
   • DWait until all regulations are finalized before making any compliance changes.
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