Terrorism and Homeland Security 9th Edition by Jonathan R. White - Test Bank

Terrorism And Homeland Security 9th
Edition by Jonathan R. White – Test Bank
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Sample Test

Chapter_03_Terrorist_Financing_and_Money_Laundering

1. It is popularly believed that the

term money laundering first appeared in the
1. True
2. False

ANSWER: True
REFERENCES: Financial Flows
LEARNING OBJECTIVES: TERR.WHIT.17.03.01 – Define money
laundering.
KEYWORDS: BLOOM’S:
Remember

2. It is hard to trace some money because it is hidden in

underground
1. True
2. False

ANSWER: True
laundering.
Remember

3. The first talk of anti-money laundering statutes began to

appear in the 1970s, and it was finally outlawed in
1. True
2. False

ANSWER: True
laundering.
Remember

4. Terrorist financing refers to the methods terrorist groups
use to raise the material needed to support operations
and
1. True
2. False

ANSWER: True
LEARNING OBJECTIVES: TERR.WHIT.17.03.02 – Define
terrorist financing.
Remember

5. Terrorist operations are extremely

1. True
2. False

ANSWER: False
Remember

6. Economic support for terrorism always involves

1. True
2. False

ANSWER: False
Remember

7. Organized crime and terrorism are

1. True
2. False

ANSWER: False
LEARNING OBJECTIVES: TERR.WHIT.17.03.03 – Compare
terrorist financing and money laundering.
Understand

8. When terrorists raise money, they usually commit the

crime after they get the
1. True
2. False

ANSWER: True
Understand

9. When terrorists move goods, people, weapons, money, or

contraband they must do so in underground
1. True
2. False

ANSWER: True
REFERENCES: Underground
Networks and Systems
LEARNING OBJECTIVES: TERR.WHIT.17.03.07 – Describe
networks and systems in informal economies.
Understand

10. Many international terrorist groups move money

through an ancient trading network called the hawala
1. True
2. False

ANSWER: True
LEARNING OBJECTIVES: TERR.WHIT.17.03.08 – Describe the
Hawala system.
Remember

11. All countries have prospered through

1. True
2. False

ANSWER: False
REFERENCES: The Political
Economy of Terrorism
LEARNING OBJECTIVES: TERR.WHIT.17.03.09 – Summarize
views on the political economy of terrorism.
Understand

12. Globalization has facilitated a global underground

economy – providing for illegal trade routes for drugs,
arms smugglers, contraband dealers, and human
1. True
2. False

ANSWER: True
Understand

13. Many scholars agree that the narcotics trade is a
primary source of money for terrorist
1. True
2. False

ANSWER: True
REFERENCES: Narcoterrorism
the debate about narcoterrorism.
Remember

14. Terrorists often move in the same circles as

organized criminals, smugglers, and drug
1. True
2. False

ANSWER: True
Remember

15. Hezbollah and Hamas use the Latin American drug

trade to raise
1. True
2. False

ANSWER: True
Remember

16. To finance its operations, the IRA developed an

organized crime network known as a:
1. mafia discovery
2. laundering discovery
3. Capone discovery
4. Dillinger discovery

ANSWER: c
laundering.
Remember

17. Putting criminal proceeds in the legitimate financial

system is known as:
1. placement
2. layering
3. integration
4. exchange

ANSWER: a
laundering.
Remember

18. Concealing the source of illegal income in confusing,

sometimes multiple financial actions is known as:
1. placement
2. layering
3. integration
4. exchange

ANSWER: b
laundering.
Remember

19. Presenting illegally gained money in the formal

economic system as if it were the result of a legal activity
is known as:
1. placement
2. layering
3. integration
4. exchange

ANSWER: c
laundering.
Remember

20. Which of the following is not a way that money is

laundered?
1. placement
2. layering
3. integration
4. exchange

ANSWER: d
laundering.
Remember

21. Which of the following terrorist organizations is most

likely to use the black market peso exchange?
1. FARC
2. PKK
3. IRA
4. al Qaeda

ANSWER: a
laundering.
Remember

22. Which of the following is the process of converting

the proceeds of crime into assets that can be used in the
formal economy?
1. Layering
2. Placement
3. Money Laundering
4. Integration

ANSWER: c
laundering.
Remember

23. The Economist reports that terrorism is in terms of

the causalities and destruction terrorist events
1. cost-neutral
2. cost-loss
3. cost-effective
4. cost-control

ANSWER: c
laundering.
Understand

24. Which of the following is not an example of layering

money?
1. converting cash into a money order
2. putting the money in a checking account
3. buying prepaid charge cards
4. wiring cash to a financer

ANSWER: b
laundering.
Understand

25. Which of the following refers to the methods used to

fund terrorist groups or operations?
1. Money laundering
2. Terrorist financing
3. Narcoterrorism
4. Terrorist funding

ANSWER: b
Remember

26. Which of the following is not a way terrorists finance

their organization and operations?
1. murder
2. petty theft
3. robbery
4. kidnapping

ANSWER: a
Remember

27. According to Freeman, which of the following is not

needed in an economic theory that accounts for the
financing of terrorist organizations and operations?
1. Need for money
2. Amount of money needed
3. System of credit
4. Source of income

ANSWER: c
Understand

28. Some analysts believe the primary reason that

officials do not understand the financing process is that
they lack a:
1. profile
2. theoretical framework
3. psychological framework
4. social framework

ANSWER: b
Understand

29. Which of the following activities do terrorist

organizations usually not engage in to fund their
operations?
1. Smuggling
2. Fraud schemes
3. Charitable donations
4. Money laundering

ANSWER: d
Understand

30. After its long experience with the Irish Republican

Army, was one of the first nations to address terrorist
1. The United Kingdom
2. Ireland
3. The United States
4. Italy

ANSWER: a
REFERENCES: Efforts to Control
Terrorist Financing
national and international efforts to control terrorist financing.
Understand

31. At the urging of the United States and the United

Kingdom, the UN General Assembly adopted the
International Convention for the in December,
1. Financial Action Task Force on Money Laundering
2. Suppression of the Financing of Terrorism
3. Peaceful End of Financing Terrorism
4. United Anti-Financing and Money Laundering Agenda

ANSWER: b
Terrorist Financing
Understand

32. The was a resolution passed by the United Nations

in 1990 (and strengthened from 2001-2006) urging
member states to adopt measures to hamper money
1. Financial Action Task Force on Money Laundering
2. Suppression of the Financing of Terrorism
3. Peaceful End of Financing Terrorism
4. United Anti-Financing and Money Laundering Agenda

ANSWER: a
Terrorist Financing
Understand

33. Counterfeiting and fraud are common weapons of
the .
1. Asian extremists
2. South American extremists
3. American extremist right
4. Eastern Europe extremists

ANSWER: c
REFERENCES: Financial Information
as an Investigative and Intelligence Tool
LEARNING OBJECTIVES: TERR.WHIT.17.03.05 – Outline
financial intelligence gathering and investigative efforts.
Remember

34. Which of the following is an investigative tool used to

track money used in illegal activities?
1. Criminological accounting
2. Investigativeaccounting
3. Forensic accounting
4. Layering accounting

ANSWER: c
Remember

35. According to Marighella, is the term used for armed

1. excavation
2. extermination
3. elimination
4. expropriation

ANSWER: d
Remember

36. Which of the following terrorist organizations ran

cigarettes from North Carolina to Michigan and used some
of the profits to fund operations in Lebanon?
1. Hezbollah
2. Hamas
3. Abu Nidal
4. al Qaeda

ANSWER: a
Remember

37. Carlos Marighella argued that “urban warfare” begins

with a campaign of .
1. expropriation
2. initiation
3. money laundering
4. investment

ANSWER: a
Remember

38. are the most frequent legal activities used by

terrorists to fund their
1. For-profit education facilities
2. Stock trading
3. Charities and business operations
4. Real estate investments

ANSWER: c
illegal and legal methods of terrorist funding.
Remember

39. By 2012, the Islamic Maghreb had become the

primary source of income for al Qaeda by smuggling:
1. cocaine
2. opium
3. tobacco
4. alcohol

ANSWER: c
illegal and legal methods of terrorist funding.
Remember

40. According to David Carter, terrorists use for

logistics, including financing
1. existing criminal networks
2. newly created criminal networks
3. charities
4. banks

ANSWER: a
Understand

41. Which of the following countries is NOT a member of

the Triborder Region of Latin America?
1. Brazil
2. Paraguay
3. Chile
4. Argentina

ANSWER: c
Remember

42. Both terrorists and criminals take advantage of

political instability in regions like the in South
1. Brazilian Northeast
2. Triborder Region
3. Trifecta Region
4. Chilean countryside

ANSWER: b
Remember

43. According to Global Witness, al Qaeda spent 10

years moving into unregulated trading in West
1. prostitution
2. diamond
3. drug
4. weapons

ANSWER: b
Remember

44. A system of exchanging money based on trust

relationships between money dealers is called .
1. money laundering
2. the hawala system
3. charitable fronts
4. expropriation

ANSWER: b
Hawala system.
Remember

45. Which of the following is NOT an advantage of the

Hawala system?
1. A record of the money is kept
2. Money crosses international borders with ease
3. It is based on trust
4. No tax records exist

ANSWER: a
Hawala system.
Understand

46. Which of the following is based in the belief that

international trade barriers should be removed so that
commerce and industry can develop in an international
free market?
1. The new economy
2. Globalization
3. Financial terrorism
4. Global industry

ANSWER: b
Remember

47. According to Loretta Napoleoni, is a term that

describes the evolution of terrorist financing from the
beginning strategies of the cold war to the
1. the new economy of terrorism
2. globalization
3. financial terrorism
4. the global industry

ANSWER: a
Understand

48. According to Mario Ferrero, what do modern radical
Islamic groups use as a means of providing economic
stability?
1. Violent activity
2. Unregulated diamond trading
3. Drug trading
4. Document fraud

ANSWER: a
Understand

49. Which of the following theories suggests that

counterterrorism policies should be aimed at providing
the world’s people with economic stability, opportunity,
and participation in the mainstream economy?
1. Microeconomic theory
2. Globalization theory
3. Macroeconomic theory
4. Global economic theory

ANSWER: c
Understand

50. Which of the following is NOT an economic policy to

counter terrorism?
1. Supporting states in threat of failure
2. Increasing loans to Third World Nations
3. Providing opportunities for people to
participate/benefit from economic systems
4. Eliminating underground economic networks

ANSWER: b
Understand

51. The aspects of terrorism have had a great influence

upon the changing nature of the international
1. religious
2. financial
3. political
4. social

ANSWER: b
Understand

52. ________________ is a term describing a political

situation where a government nominally controls its own
state but where large regions are either anarchic or under
the control of
1. Globalization
2. Shell state
3. Weak state
4. Failed state

ANSWER: b
Remember

53. An area outside of a government’s control is known

as a(n):
1. anti-state
2. failed state
3. shell state
4. anarchic state

ANSWER: b
Remember

54. Which of the following terrorist organizations

changed the structure of terrorist financing by trying to
gain control of the economy?
1. FARC
2. ETA
3. IRA
4. PKK

ANSWER: b
Remember

55. According to Napoleoni, modern terrorism is an

international force supported by groups in that
continually change both their organizational structures
and political goals to maintain income from an
international underground
1. anti-states
2. failed states
3. shell states
4. anarchic states

ANSWER: c
Remember

56. The new economy of terrorism is a term used by

Napoleoni to describe the evolution of terrorist financing
from the beginning strategies of the to the
1. Cold War
2. French Revolution
3. Civil War
4. Vietnam War

ANSWER: a
Remember

57. The political economy of terrorism involves groups
that have the ability to act autonomously in and
states.
1. legitimate, illegitimate
2. active, inactive
3. shell, failed
4. passive, active

ANSWER: c
Understand

58. According to David Kaplan, are responsible for the

bulk of terrorist
1. charities
2. drugs
3. crimes
4. all of the above

ANSWER: a
Remember

59. What country is the primary source of heroin in

Europe?
1. Afghanistan
2. Iraq
3. Saudi Arabia
4. China

ANSWER: a
Remember

60. What is the term used to refer to groups using either

terrorist tactics to support drug operations or drug-trade
profits to finance terrorism?
1. Narcoterrorism
2. Narcotactics
3. Narcotic terror
4. Narcotrafficking

ANSWER: a
Remember

61. According to Rachel Ehrenfeld, terrorists are

involved in the international production and distribution
of:
1. tobacco
2. counterfeit goods
3. drugs
4. textiles

ANSWER: c
Remember

62. According to the , drugs were not linked to al

Qaeda’s attack on New York and Washington C.
1. Bush Administration
2. Obama Administration
3. 9/11 Commission
4. United Nations

ANSWER: c
Remember

63. Opponents of narcoterrorism argue that governments

use the term to increase their own power by defining as
1. common criminals
2. Muslims
3. Mexicans
4. diplomats

ANSWER: a
Understand

Asadullah is an operative for the Lashkar-e-Taiba, a Kashmiri
terrorist group. Asif, Asadullah’s contact in Peshawar, needs
$500 to buy AK-47s. After raising funds in the United States,
Asadullah visits a special shop owner, hands over $500, and
asks him to get the money to Asif. The Peshawar shop owner
gives Asif the money, not knowing its use. Asif buys the
weapons and delivers them to contacts in the Lashkar-e-Taiba.
There is no record of the transaction.
64. The financial transaction above is an example of the

1. Shwarma
2. Hawala
3. Falafel
4. Salama

ANSWER: b
PREFACE NAME: AK-47
Hawala system.
Remember

65. Why does this situation present special challenges

for counterterrorism efforts?
1. There is no way to trace the flow of funds
2. The system gives terrorists unlimited funds
3. Governments are not able to impart taxes on the
transactions
4. No challenge exists – such transactions are common
in international banking

ANSWER: a
PREFACE NAME: AK-47
Hawala system.
Understand

66. is the process of converting proceeds from crime
into legitimate
ANSWER: Money
laundering
laundering.
Remember

67.
is a term used by James Adams to explain
the Irish Republican Army’s entry into organized
ANSWER: Capone
discovery
laundering.
Remember

68. is defined as placing illegal monetary profits in the

legitimate financial
ANSWER: Placement
laundering.
Remember

69. is defined as concealing the source of illegal
ANSWER: Layering
laundering.
Remember

70. is defined as assimilating illegally obtained money in

the formal economy and giving funds the appearance of
ANSWER: Integration
laundering.
Remember

71. The is a method for converting illegal profits in S.

currency to Colombian pesos in an effort to hide the
illegal funds.
ANSWER: black market

peso exchange
laundering.
Remember

72. is an investigative tool used to track money used in

illegal
ANSWER: Forensic
accounting
Remember

73. is a term used by Carlos Marighella for armed
ANSWER: Expropriation
Remember

74. The major city in is Ciudad del

ANSWER: The Triborder
Region
Remember

75. is a political party, a social welfare organization, and

a militant group that uses all types of sources for funding,
and moves money in underground networks and
laundering
ANSWER: Hezbollah
Understand

76. ____________________________ is a common global

economic network that ideally unites the world through
production and international
ANSWER: Globalization
Remember

77. Most of Hezbollah’s funds come from state funding,

with acting as the principal
ANSWER: Iran
Remember

78. Inside Lebanon is an extensive protection racket

that charges legitimate businesses to ensure that their
property will not be damaged and that their personnel are
not The charges are collectively known as a(n)
______________________________.
ANSWER: “Hezbollah
tax”
Understand

79. The underground economy and its ties to crime are

so important to terrorists because all of the transactions
remain
.
ANSWER: hidden
Understand

80. The FBI estimates that the underground economy

produces $_______ billion per
ANSWER: 500
Understand

81. The ____________________________ is one method used to

transfer money from one person to another without
leaving a record of the
ANSWER: hawala
system
Hawala system.
Remember

82. Illegitimate groups form states, organizations that

act like a government in a place where the government is
not strong enough to
ANSWER: shell
Remember

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Terrorism and Homeland Security 9th Edition by Jonathan R. White - Test Bank

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Available Formats

Terrorism And Homeland Security 9th

Edition by Jonathan R. White – Test Bank

To Purchase this Complete Test Bank with Answers Click the

If face any problem or Further information contact us At tbzuiqe@gmail.com

1. It is popularly believed that the

2. It is hard to trace some money because it is hidden in

3. The first talk of anti-money laundering statutes began to

5. Terrorist operations are extremely

6. Economic support for terrorism always involves

7. Organized crime and terrorism are

8. When terrorists raise money, they usually commit the

9. When terrorists move goods, people, weapons, money, or

10. Many international terrorist groups move money

11. All countries have prospered through

12. Globalization has facilitated a global underground

14. Terrorists often move in the same circles as

15. Hezbollah and Hamas use the Latin American drug

16. To finance its operations, the IRA developed an

17. Putting criminal proceeds in the legitimate financial

18. Concealing the source of illegal income in confusing,

19. Presenting illegally gained money in the formal

20. Which of the following is not a way that money is

21. Which of the following terrorist organizations is most

22. Which of the following is the process of converting

23. The Economist reports that terrorism is in terms of

24. Which of the following is not an example of layering

25. Which of the following refers to the methods used to

26. Which of the following is not a way terrorists finance

27. According to Freeman, which of the following is not

28. Some analysts believe the primary reason that

29. Which of the following activities do terrorist

30. After its long experience with the Irish Republican

31. At the urging of the United States and the United

32. The was a resolution passed by the United Nations

34. Which of the following is an investigative tool used to

35. According to Marighella, is the term used for armed

36. Which of the following terrorist organizations ran

37. Carlos Marighella argued that “urban warfare” begins

38. are the most frequent legal activities used by

39. By 2012, the Islamic Maghreb had become the

40. According to David Carter, terrorists use for

41. Which of the following countries is NOT a member of

42. Both terrorists and criminals take advantage of

43. According to Global Witness, al Qaeda spent 10

44. A system of exchanging money based on trust

45. Which of the following is NOT an advantage of the

46. Which of the following is based in the belief that

47. According to Loretta Napoleoni, is a term that

49. Which of the following theories suggests that

50. Which of the following is NOT an economic policy to

51. The aspects of terrorism have had a great influence

52. ________________ is a term describing a political

53. An area outside of a government’s control is known

54. Which of the following terrorist organizations

55. According to Napoleoni, modern terrorism is an

56. The new economy of terrorism is a term used by

58. According to David Kaplan, are responsible for the

59. What country is the primary source of heroin in

60. What is the term used to refer to groups using either

61. According to Rachel Ehrenfeld, terrorists are

62. According to the , drugs were not linked to al

63. Opponents of narcoterrorism argue that governments

64. The financial transaction above is an example of the