Chapter 7 Graded Quiz W Answers

Chapter 7: ACC-4800-001
Chapter 7
Instructions:
Questions 45 Questions Limits No Time Limit Unlimited Attempts Points 45 pts possible Due Date May 22 at 11am Availability Always available
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Score for this attempt: 28 out of 45 Submitted May 22 at 10:29am This attempt took 1 day. Question 1: 1 pts The purpose of money laundering is to: The purpose of money laundering is to: Take illegitimate funds and make them look like they were earned from legitimate business activities. Purposefully transfer restricted grant monies into discretionary accounts through confutation. Secretly take suitcases full of money from one country to another. All of the above. Only a and b. 0/1 Question 2: 1 pts A first step in a money laundering operation is to: A first step in a money laundering operation is to: Obtain legal money. Deposit illegal money into the banking system. Open a correspondent account. Send a money wire transfer to another country. None of the above. 1/1 Question 3: 1 pts What is an important factor in creating the need to start a money laundering operation? What is an important factor in creating the need to start a money laundering operation? Successful criminal activities. The increase in international business. Drug smuggling. The Internet. None of the above. 1/1
Question 4: 1 pts The reason most money laundering schemes seem to be uncovered is due to: The reason most money laundering schemes seem to be uncovered is due to: Forensic accountants. Bank officials. The FBI. A squealer about the operation. Both b and d. 0/1 Question 5: 1 pts To avoid detection by law enforcement authorities, money launderers will only send a maximum money transfer that is: To avoid detection by law enforcement authorities, money launderers will only send a maximum money transfer that is: $5,000 or less. $10,000 or less. $15,000 or less. $20,000 or less. None of the above. 1/1 Question 6: 1 pts Banks must file which of the following forms when they become aware of suspicious customer activity related to possible money laundering? Banks must file which of the following forms when they become aware of suspicious customer activity related to possible money laundering? Currency Transaction Report. Over-Currency Report. International Transportation of Currency and Money Report. None of the above. 0/1 Question 7: 1 pts The difference between an off-shore bank and a shell bank is that: The difference between an off-shore bank and a shell bank is that: The shell bank has a physical presence in the country in which it is licensed whereas the offshore bank does not. The off-shore bank specifically cannot carry on business in the jurisdiction in which it is licensed whereas such restrictions do not specifically affect shell banks. Only shell banks use correspondent services. U.S. banks have more access to client account information in a shell bank than in an off-shore bank. None of the above. 1/1 Question 8: 1 pts Which one of the following businesses would a money launderer most want to acquire? Which one of the following businesses would a money launderer most want to acquire?
Travel agency. Broker. Series of newspaper/magazine stands. Gas station. None of the above. 0/1 Question 9: 1 pts Which one of the following is the easiest to falsify? Which one of the following is the easiest to falsify? Web logs. Paper documents. Wire transfer reports. Hard drive files. 1/1 Question 10: 1 pts All of the following would be found in HTTP log files except: All of the following would be found in HTTP log files except: Size of the requested files. Address of the website that the current visitor came from. IP address of the visitor. Speed of transfer from the previous website. None of the above. 1/1 Question 11: 1 pts Which one of the following statements about web logs is true? Which one of the following statements about web logs is true? Logs can show unencrypted passwords. Logs provide an audit trail of evidence about activities occurring on a website. Log entries are so expansive on a busy website that they are virtually impossible to use for forensic purposes. Log files are easy for hackers to erase. Both a and b. 0/1 Question 12: 1 pts Logs provide which of the following? Logs provide which of the following? Name of the visitor entering the website. Name of the country where the visitor's PC is located. The web page the visitor was at before entering the website. The route taken over the Internet to arrive at the current website. All of the above. 0/1 Question 13: 1 pts The GMT time adjust to the East Coast of the United States is: The GMT time adjust to the East Coast of the United States is: +5 hours.
-5 hours. +3 hours. The time does not need to be adjusted. None of the above. 0/1 Question 14: 1 pts After entering an IP address into a traceroute program, how long does it normally take to trace the IP address back to its originating source? After entering an IP address into a traceroute program, how long does it normally take to trace the IP address back to its originating source? 1-2 hours usually. 30 minutes on average. About 1 minute. A few seconds. None of the above. 1/1 Question 15: 1 pts Which of the following methods is the least likely to be used by a money launderer? Which of the following methods is the least likely to be used by a money launderer? Wire transfers of funds for less than $10,000. Underground banking representatives who transfer funds. Internet bank transfers of funds. Correspondent bank accounts. 0/1 Question 16: 1 pts In order to avoid working with a money launderer, due diligence in relationship to a new business partner means: In order to avoid working with a money launderer, due diligence in relationship to a new business partner means: Becoming familiar with the background of the potential new partner. Checking pay stubs of the new partner. Reviewing the original copies (not photocopies) of verification documents. All of the above. 1/1 Question 17: 1 pts One of the most important legislative acts restricting the activities of money launderers in recent years is the: One of the most important legislative acts restricting the activities of money launderers in recent years is the: Bank Secrecy Act. Currency Transportation Act. International Money Laundering Abatement and Financial Anti-Terrorism Act. Bankers' Money Laundering Act. None of the above. 0/1
Question 18: 1 pts In a family trust, if the trust documents provide for the automatic transfer of the trust to another jurisdiction if the trust comes under investigation, such a clause is called the: In a family trust, if the trust documents provide for the automatic transfer of the trust to another jurisdiction if the trust comes under investigation, such a clause is called the: Escape clause. Removal clause. Flee clause. Nondemential excel clause. None of the above. 0/1 Question 19: 1 pts Money launderers prefer to establish business relationships with a company whose operations are characterized by: Money launderers prefer to establish business relationships with a company whose operations are characterized by: Being located in a foreign country. Large cash flows. Low inventories. Being run by one entrepreneur. None of the above. 1/1 Question 20: 1 pts Which of the following activities would NOT be considered a likely "red flag" to possible money laundering activities? Which of the following activities would NOT be considered a likely "red flag" to possible money laundering activities? Payments made with several different currencies. Making a large number of bank deposits ... all under $10,000. Dividends paid to non-company stockholders. A large number of foreign country stamps in a passport. All of the above. 0/1 Question 21: 1 pts Many times auditors do not believe they should report possible money laundering activities that they find in their audits because: Many times auditors do not believe they should report possible money laundering activities that they find in their audits because: Money laundering, per se, does not materially affect the company's financial reports. Client confidentiality should be maintained. There is no auditing requirement for the reporting of money laundering. All of the above. 1/1 Question 22: 1 pts In what year was money laundering recognized as a separate criminal act by federal law in the United States?
In what year was money laundering recognized as a separate criminal act by federal law in the United States? 1950. 1975. 1986. It is not recognized as a separate criminal act by the United States. None of the above. 1/1 Question 23: 1 pts Which one of the following business events or transactions is most likely a sign of money laundering operations?
Which one of the following business events or transactions is most likely a sign of money laundering operations?
Prepayments on a credit card. Kiting checks. Smoothing net income on the financial statements. Stealing passwords. 1/1 Question 24: 1 pts Which of the following is NOT a nonfinancial institution?
Which of the following is NOT a nonfinancial institution?
Broker/dealers Credit card companies Pawn shops Correspondent banks 1/1 Question 25: 1 pts Concentration accounts:
Concentration accounts:
Were eliminated by the Patriot Act. Are used by banks to temporarily hold the cash deposits that they receive. Is a term that relates to activities that were followed in Germany before WWII. Are a way money launderers gain access to the U.S. banking system. 0/1 Question 26: 1 pts If bearer shares are used as means to identify ownership in a company, it means:
If bearer shares are used as means to identify ownership in a company, it means:
Only that all owners of the company are identified. Only the person presenting the bearer shares is identifiable. The company is in receivership. The company is a foreign company. 1/1
Question 27: 1 pts If I am using my online checking account to transfer money to another online checking account at another bank, it is called:
If I am using my online checking account to transfer money to another online checking account at another bank, it is called:
A wire transfer. An electronic fund transfer. An underground transfer. None of the above. 0/1 Question 28: 1 pts Skip to question text.
The 404 in the following log entry means: 212.212.41.33 jdoe ships [06/Nov/2001:02:14:37 -0500] GET/library.html/books HTTP/1.1 404 4839
The request was successful. The request is completed. The request was unsuccessful. The request conforms with Section 404 of the Sarbanes-Oxley Act. 1/1 Question 29: 1 pts A keylogger is used to:
A keylogger is used to:
Break into a computer. Steal passwords. Record all keystrokes on the keyboard. Physically copy keys to locks. 1/1 Question 30: 1 pts In which of the following would it be most unlikely for a money launder to have a bank account?
In which of the following would it be most unlikely for a money launder to have a bank account?
Netherlands Nauru Caymen Islands Belize 0/1 Question 31: 1 pts When your bank files a report with the Treasury Department that you transferred $200,000 into your checking account, which of the following forms was filed?
When your bank files a report with the Treasury Department that you transferred $200,000 into your checking account, which of the following forms was filed?
KYC CTR CMIR
SAR 1/1 Question 32: 1 pts __________ takes place when one bank provides services to another bank to move funds, exchange currencies, and access investment services.
__________ takes place when one bank provides services to another bank to move funds, exchange currencies, and access investment services.
International banking. Pay-through accounting. Correspondent banking. Shell banking. 1/1 Question 33: 1 pts Which of the following is software used to monitor for the possibility of money laundering activities?
Which of the following is software used to monitor for the possibility of money laundering activities?
Currency Transaction Analysis (CTA). Americas Software Transaction Monitoring (ASTM). SAR. CMIR. 0/1 Question 34: 1 pts Which of the following form numbers are associated with a CTR (Currency Transaction Report)?
Which of the following form numbers are associated with a CTR (Currency Transaction Report)?
Form 101. Form 104. Form 105. Form 109. 1/1 Question 35: 1 pts Skip to question text.
Which of the following accounts may be used by an organization to temporarily store dollar amounts received until it is decided how to actually record a permanent transaction in the books?
Vault accounts. Temporary accounts. Suspense accounts. Off-the-book accounts. 0/1 Question 36: 1 pts Which of the following activities would not trigger a bank’s regulatory requirement to file an SAR?
Which of the following activities would not trigger a banks regulatory requirement to file an SAR?
Changes to spelling or arrangements of a name on a form. The making of an excessive number of deposits and withdrawals. Two or more individuals making deposits to the same account. Using multiple false identification documents. 0/1 Question 37: 1 pts “Smurfing” is:
Smurfing is:
A method of concealing a weblog. Transferring small amounts of encrypted information over the Internet. Frequent transfer of funds in amounts too small to trigger a CTR. Rotating funds through a series of shell banks in order to break the audit trail. 0/1 Question 38: 1 pts Digital currency exchangers:
Digital currency exchangers:
Distribute digital tokens for members to make online purchases. Use webservers based in the United States to ensure better security for their operations. Need to make SAR reports. Use currencies denominated in gold. 0/1 Question 39: 1 pts Digital currency:
Digital currency:
Uses e-Vouchers and cell phone transfers. Is only spent online. Is monitored by the U.S. Treasury Department. Cannot be sent anonymously. 1/1 Question 40: 1 pts An ecurrency exchanger is most likely to:
An e-currency exchanger is most likely to:
Keep gold bullion in a vault. Maintain a number of international bank accounts. Be responsible for the exchange rate used with e-currency. Have a hidden IP address. 1/1 Question 41: 1 pts Digital currency is the same as:
Digital currency is the same as:
Digital tokens. E-currency. E-coupons. E-purchase orders. 1/1 Question 42: 1 pts What is a clear exception to the cash reporting requirements under IRS Form 8300?
What is a clear exception to the cash reporting requirements under IRS Form 8300?
Wire transfers. Cashier's checks. Lease payments. Health services. 0/1 Question 43: 1 pts When a business receives cash of more than $10,000, the receipt of the cash must be reported to the IRS on:
When a business receives cash of more than $10,000, the receipt of the cash must be reported to the IRS on:
Form 1090. Form 8300. Form 1040. Form 109. 1/1 Question 44: 1 pts With the passage of the Unlawful Internet Gambling Act of 2006 and its implementation:
With the passage of the Unlawful Internet Gambling Act of 2006 and its implementation:
Online Internet gambling for the United States became illegal. There was little effect on online wagering in the United States. Has caused a number of other countries around the world to adopt similar legislation. Has negatively affected gambling revenues at Indian casinos in the United States. 1/1 Question 45: 1 pts In order to install keylogging software on your PC, you need:
In order to install keylogging software on your PC, you need:
Permission from law enforcement personnel. Administrative rights on your PC. All the passwords for the programs used on the PC. Good antivirus software in use on the PC. 1/1 Question 46: 1 pts IP addresses are good for determining:
IP addresses are good for determining:
Web pages visited. User names Geographical location. Names of requested files. 0/1 Question 47: 1 pts Pick the most successful method for transferring large amounts of illegal cash without detection.
Pick the most successful method for transferring large amounts of illegal cash without detection.
Fedwire transfers. E-currency transfers. Underground banking transfers. EFTs. 0/1 Question 48: 1 pts The Patriot Act applies to all the following organizations except:
The Patriot Act applies to all the following organizations except:
Credit card companies. Pawn shops. Banks. Public utilities. 1/1 Question 49: 1 pts The first step in the money laundering process is called:
The first step in the money laundering process is called:
Layering. Integration. Bagging. Placement. 1/1 Question 50: 1 pts In the money laundering process, layering is:
In the money laundering process, layering is:
Depositing moneys into a bank account. Selling high-end expensive cars. Transferring monies from one bank account to another. Investing illegal monies into real estate. 1/1
Quiz Score:
28 out of 45

Chapter 7 Graded Quiz W Answers

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Chapter 7: ACC-4800-001

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KYC CTR CMIR

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