CAMS Chapter 1 Reading Practice Exam Questions & Answers 2024/2025

CAMS Chapter 1 Reading Practice Exam Questions & Answers 2024/2025 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. - ANSWERSB 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 - ANSWERSB