CAMS - Chapter 1 Reading - Practice
Questions & ANSWERS
Which statement is true?
A. Monetary instruments are vulnerable to money laundering, because it allows small
banks to open correspondent accounts with larger financial institutions
B. Bust-out schemes are schemes where the extension of credit is obtained and is
increased fraudulently while the perpetrators avoid having to pay back the credit card
company
C. Terrorist financing is different than money laundering because it generally involves
larger amounts than traditional laundering of criminal proceeds.
D. E-cash is not attractive to the money launderer because it cannot be completely
anonymous and does not allow for large amounts to be "transported" quickly and easily.
- ANSWER B
Which statement is true?
A. A bearer Cher is a negotiable instrument that accords ownership in sequentially
numbered bank accounts
B. And indicator of money laundering is when an insurance policy holder is more
interested in the cancellation terms of the policy then the benefits of the policy
C. And indicator of money laundering in the trust factor is "Wash Trading" or offsetting
securities transactions, creating the illusion of trust.
D. Commodity trading advisor's do not have direct contact with their clients and
therefore are less vulnerable to money laundering than gatekeepers - ANSWER B
What is a futures commission merchant? A person or company that
A. Solicits or accepts orders on futures contracts and commodity options and excepts
funds for their execution.
B. Solicits and except commodity futures orders from customers but does not except
funds.
C. Provides advice on securities and investments and managers client assets.
Questions & ANSWERS
Which statement is true?
A. Monetary instruments are vulnerable to money laundering, because it allows small
banks to open correspondent accounts with larger financial institutions
B. Bust-out schemes are schemes where the extension of credit is obtained and is
increased fraudulently while the perpetrators avoid having to pay back the credit card
company
C. Terrorist financing is different than money laundering because it generally involves
larger amounts than traditional laundering of criminal proceeds.
D. E-cash is not attractive to the money launderer because it cannot be completely
anonymous and does not allow for large amounts to be "transported" quickly and easily.
- ANSWER B
Which statement is true?
A. A bearer Cher is a negotiable instrument that accords ownership in sequentially
numbered bank accounts
B. And indicator of money laundering is when an insurance policy holder is more
interested in the cancellation terms of the policy then the benefits of the policy
C. And indicator of money laundering in the trust factor is "Wash Trading" or offsetting
securities transactions, creating the illusion of trust.
D. Commodity trading advisor's do not have direct contact with their clients and
therefore are less vulnerable to money laundering than gatekeepers - ANSWER B
What is a futures commission merchant? A person or company that
A. Solicits or accepts orders on futures contracts and commodity options and excepts
funds for their execution.
B. Solicits and except commodity futures orders from customers but does not except
funds.
C. Provides advice on securities and investments and managers client assets.
