SKILLUMEN
Try for free
Interview Questions  ›   Agents

Agents & Tool Calling

6 interview questions you should be able to answer.
3 worked answers   •   3 practice questions   •   Applied
Think. Act.
Observe. Repeat
  until done.↘
Updated Sep 2026
01 LOOP
1 / 6

What is the repeating loop an agent runs,
and when does it stop?

Think about your answer before revealing.
Give it a try!
Interview answer
◷  ~ 30 seconds

An agent runs the ReAct loop. A Thought reasons about what to do next, an Action calls a tool, and an Observation feeds the result back.

It keeps cycling through think, act, observe, think again, building up what it has learned, and it stops when it has gathered enough to write a final answer. A safety cap like a step limit forces a stuck run to stop.

That loop is why an agent can answer things it couldn't possibly know up front: it discovers the pieces one at a time.

THOUGHT ACTION OBSERVATION think, act, observe, repeat enough to answer ✓ answer STEP LIMIT a safety cap that forces a stuck run to stop
What the interviewer is testing
⟳
Loopthink, act, observe
✓
Exitenough to answer
▣
Guarda hard step limit
Follow-up they may ask
02 CORE
2 / 6

In tool calling, what does the model emit, who runs the function,
and how does the result get back?

Walk through one full round before revealing.
Interview answer
◷  ~ 30 seconds

The model emits a request, the tool's name plus filled-in arguments as JSON, and then pauses. It never executes anything itself.

Your code sees that request, runs the real function, and appends two things to the conversation: the model's own request and a tool_result tied to it by an id.

Then you call the model again with the longer message history, and now it can read the result and decide the next move. The growing transcript is the agent's working memory.

MODEL
Emits tool name
+ JSON args
Pauses, runs
nothing itself
Reads the result,
picks next move
YOUR CODE
Runs the real
function
Appends the
tool_result by id
Calls the model
again
03 DEEPER
3 / 6

What do the Thought, Action, and Observation steps of ReAct
each correspond to?

Think about your answer before revealing.
Interview answer
◷  ~ 25 seconds

Thought is the model reasoning out loud about what to do next, the "reason" half of ReAct. Action is the "act" half: an actual tool call, a function name plus arguments.

Observation is what your code hands back, the tool's result.

The model reads the observation, forms the next thought, and the cycle continues. The 2022 ReAct paper found that interleaving reasoning with actions beats doing either alone.

THOUGHT = reasoning out loud ACTION = a real tool call OBSERVATION = the tool's result the result feeds the next thought
More questions
04Why is it the model rather than your code that decides when a tool is needed?
05How can an agent fire several tools at once, and why do it?
06What patterns and safeguards keep a multi-agent system from running away?
These run inside Skillumen with graded answers.

This is a small sample.
600+ interview questions live inside Skillumen.

Every concept card carries its own interview questions, graded as you answer.
Free to start.

See more interview questions