CAMS (CHAPTER 1 READING) PRACTICE QUESTIONS
WITH ALL CORRECT & 100% VERIFIED ANSWERS|
ACTUAL COMPLETE EXAM|ALREADY GRADED A+
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. ✔Correct 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 ✔Correct 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.
D. Drawls commodity checks on custodial arrangements that allows him to remain anonymous to the
broker. ✔Correct Answer-A
What is a red flag of money laundering through casinos?
A. Pre-paying a casino token or Chip by using funds that are already in the casino system creating a
debit balance
WITH ALL CORRECT & 100% VERIFIED ANSWERS|
ACTUAL COMPLETE EXAM|ALREADY GRADED A+
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. ✔Correct 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 ✔Correct 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.
D. Drawls commodity checks on custodial arrangements that allows him to remain anonymous to the
broker. ✔Correct Answer-A
What is a red flag of money laundering through casinos?
A. Pre-paying a casino token or Chip by using funds that are already in the casino system creating a
debit balance
