This present continuous exercise is to practise making 'yes / no' and 'wh' questions. I hope you'll keep doing these practice exercises until making the verb fom becomes really easy, because this makes life much more simple. Instead of thinking about if you need 'do' or 'are', you can concentrate on choosing the best tense for the situation, which is the difficult part.
Click here to review how to make the present continuous.
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Download this exercise in PDF.
If you want to learn more about the tenses, especially about how to use them when you're speaking, you could try my video course, Terrific Tenses, which is part of Perfect English Grammar Plus.