Financial Frauds and White-Collar Crimes Quiz

Test your knowledge on finance & criminology with questions on fraud, embezzlement, Madoff scandal, Ponzi schemes & more.

#1

Which of the following is an example of financial fraud?

Credit card theft
Paying taxes on time
Donating to charity
Saving money in a bank account
1 answered
#2

What does the acronym 'KYC' stand for in the context of banking and finance?

Keep Your Currency
Know Your Customer
Keep Your Cash
Know Your Capital
1 answered
#3

Which of the following is a characteristic of a Ponzi scheme?

High returns with low risk
Transparent and legal investment operations
Stable and sustainable financial growth
Consistent distribution of profits
1 answered
#4

Which of the following is an example of a white-collar crime?

Armed robbery
Burglary
Identity theft
Assault
1 answered
#5

What does the acronym 'AML' stand for in the context of combating financial crimes?

Anti-Money Laundering
Automated Money Leverage
Asset Management and Liability
Advanced Market Liquidity
1 answered
#6

What is the term for the process of concealing the origins of illegally obtained money?

Money laundering
Capital investment
Wealth preservation
Financial planning
1 answered
#7

Which of the following is a common motive for committing financial fraud?

Altruism
Financial need
Ethical principles
Transparency
1 answered
#8

What does the term 'embezzlement' refer to?

Unauthorized access to computer systems
Laundering money through shell companies
Illegally obtaining money or property entrusted to one's care
Manipulating stock prices
1 answered
#9

Which financial scandal involved the fraudulent activities of Bernard Madoff?

Enron scandal
Subprime mortgage crisis
Ponzi scheme
LIBOR scandal
1 answered
#10

What is the role of a whistleblower in uncovering white-collar crimes?

To facilitate money laundering operations
To cover up evidence of financial fraud
To alert authorities to illegal activities within an organization
To provide insider trading tips to investors
1 answered
#11

What is the term for the practice of manipulating financial markets to create the false appearance of activity or price movements?

Insider trading
Front running
Pump and dump
Spoofing
1 answered
#12

Which of the following is NOT a common method used in money laundering?

Shell companies
Cryptocurrency transactions
Direct deposit
Underground banking
1 answered
#13

What is the term for the illegal practice of obtaining sensitive information by disguising as a trustworthy entity in electronic communication?

Phishing
Social engineering
Hacking
Cyber espionage
1 answered
#14

What is the term for the illegal practice of manipulating financial statements to present a more favorable picture of a company's financial performance?

Cooking the books
Financial juggling
Audit rotation
Balance sheet trickery
1 answered
#15

Which regulatory body in the United States is responsible for enforcing securities laws and regulating the securities industry?

Internal Revenue Service (IRS)
Federal Bureau of Investigation (FBI)
Securities and Exchange Commission (SEC)
Department of Justice (DOJ)
1 answered
#16

Which financial scandal involved the accounting firm Arthur Andersen and the energy company Enron?

Madoff investment scandal
LIBOR scandal
WorldCom scandal
Enron scandal
1 answered

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