#1
What does the 'Know Your Customer' (KYC) policy aim to achieve in financial institutions?
To identify and verify the identity of clients
To predict market trends
To maximize profits
To reduce taxes
#2
Which entity is responsible for setting accounting standards in the United States?
International Accounting Standards Board (IASB)
Financial Accounting Standards Board (FASB)
Securities and Exchange Commission (SEC)
Public Company Accounting Oversight Board (PCAOB)
#3
What is the primary purpose of the Financial Crimes Enforcement Network (FinCEN)?
To regulate credit card companies
To combat money laundering and financial crimes
To provide tax breaks for corporations
To oversee the trading of futures contracts
#4
Which regulatory body oversees the regulation of investment advisers and broker-dealers in the United States?
Financial Industry Regulatory Authority (FINRA)
Commodity Futures Trading Commission (CFTC)
Securities and Exchange Commission (SEC)
Federal Reserve System (Fed)
#5
Which entity issues Generally Accepted Accounting Principles (GAAP) in the United States?
International Financial Reporting Standards (IFRS)
Financial Accounting Standards Board (FASB)
Securities and Exchange Commission (SEC)
Public Company Accounting Oversight Board (PCAOB)
#6
Which regulatory body oversees the Securities Exchange Act of 1934 in the United States?
Federal Reserve System (Fed)
Securities and Exchange Commission (SEC)
Financial Industry Regulatory Authority (FINRA)
Commodity Futures Trading Commission (CFTC)
#7
What is the purpose of the Dodd-Frank Wall Street Reform and Consumer Protection Act?
To regulate credit card companies
To reform the financial regulatory system
To provide tax breaks for corporations
To increase interest rates on loans
#8
What is the primary function of the Financial Industry Regulatory Authority (FINRA)?
To regulate investment advisors
To enforce anti-money laundering laws
To oversee the trading of futures contracts
To regulate the conduct of broker-dealers
#9
Which regulatory body oversees the implementation of the Sarbanes-Oxley Act in the United States?
Securities and Exchange Commission (SEC)
Financial Industry Regulatory Authority (FINRA)
Federal Reserve System (Fed)
Commodity Futures Trading Commission (CFTC)
#10
What is the primary objective of the International Financial Reporting Standards (IFRS)?
To standardize financial reporting globally
To regulate stock exchanges
To manage interest rates
To enforce tax policies
#11
What is the purpose of the Volcker Rule?
To restrict banks from making certain speculative investments
To increase corporate tax rates
To regulate consumer credit
To eliminate insider trading
#12
What does the term 'fiduciary duty' refer to in finance?
A duty to act in the best interest of clients
A duty to maximize profits at any cost
A duty to avoid taxes
A duty to disclose sensitive financial information
#13
Which of the following is NOT a component of Basel III regulations?
Minimum capital requirements
Leverage ratio
Market liquidity risk
Credit rating agencies oversight
#14
Which of the following is NOT a requirement of the Basel II Accord?
Minimum capital requirements
Supervisory review process
Market risk management
Consumer protection regulations
#15
Which of the following is NOT a principle of the General Data Protection Regulation (GDPR)?
Transparency
Accountability
Confidentiality
Lawfulness, fairness, and transparency
#16
Which entity is responsible for overseeing the implementation of the Foreign Account Tax Compliance Act (FATCA)?
International Monetary Fund (IMF)
Financial Action Task Force (FATF)
Internal Revenue Service (IRS)
Securities and Exchange Commission (SEC)
#17
Which of the following is NOT a component of operational risk in banking?
Fraud risk
Technology risk
Market risk
Legal and compliance risk