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1Z0-1127-25 Fundamentals of Large Language Models Practice Question

Which TWO are advantages of using retrieval-augmented generation (RAG) over fine-tuning for incorporating new knowledge?

⚠ Common exam trap

Oracle often tests the misconception that RAG is always faster or cheaper than fine-tuning, when in reality RAG introduces retrieval latency and higher token usage, making it less suitable for low-latency or high-throughput scenarios.

Answer choices

Why each option matters

Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.

Correct answer & explanation

Enables the model to access up-to-date information without retraining

RAG retrieves relevant, up-to-date information from an external knowledge base at inference time, allowing the model to answer questions about recent events or proprietary data without requiring any retraining. This is a key advantage over fine-tuning, which would need a new training cycle to incorporate the same new knowledge.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Better at capturing domain-specific writing style

    Why it's wrong here

    Fine-tuning is better for style adaptation.

  • Enables the model to access up-to-date information without retraining

    Why this is correct

    RAG retrieves fresh data from external sources.

  • Eliminates the need for a vector database

    Why it's wrong here

    RAG often relies on a vector database for retrieval.

  • Reduces token usage and latency compared to fine-tuning

    Why it's wrong here

    RAG adds retrieval step, which may increase latency.

  • Cost-effective for large corpora that change frequently

    Why this is correct

    No need to retrain; only update the knowledge base.

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