Q&A Hero

Q: What is identify theft?

Q: What is the difference between check forgery and check counterfeiting?

Q: The Second National Bank has just been robbed. What should bank employees do with the demand note left behind by the robber? Why?

Q: How should surveillance cameras be positioned in a bank for maximum effectiveness?

Q: Shady Sam robbed three banks last week: In one heist, he got away with $2,500; in the second, he netted $5,600; the third robbery was worth $4,350. After he was caught, police were able to recover 90 percent of the loot. Sam had spent the rest. What was the dollar amount of the stolen money that was NOT recovered?

Q: An online criminal deposits $10,000 into a victims account, telling the victim to send $9,500 to a third party. The victim supposedly gets to keep $500 as a transaction fee. The criminal quickly cancels the initial deposit, though. If the criminal gets 14 people to agree to this scam, how much money has been stolen?

Q: Jerrys Garage accepted $700 in counterfeit bills for a repair job. The companys insurance policy covers losses from counterfeit money up to $1,000 with a $250 deductible. What is the out-of-pocket loss experienced by Jerrys Garage?

Q: An electronic warning placed on your accounts to monitor for suspicious financial activity is called a(n) ____________________.

Q: A(n) ____________________of interest occurs when two interests are at cross-purposes.

Q: A(n) ____________________dilemma involves a situation that makes a person question what is the right or wrong thing to do.

Q: A computer program that monitors and limits incoming and outgoing online transmissions is called a(n) ____________________.

Q: ____________________is the act of sending a user an e-mail falsely claiming to be a legitimate enterprise in an attempt to solicit private information.

Q: Purposefully writing checks on closed accounts is called ____________________, or closed account fraud.

Q: Check ____________________requires opening accounts at two or more banks and using the float time of available funds to create fraudulent balances.

Q: The new $20 bill design includes a(n) ____________________, a faint image similar to the large portrait. It is part of the paper itself and is visible from both sides when the bill is held up to the light.

Q: ____________________is a deception deliberately practiced to secure unfair or unlawful gain.

Q: A bill ____________________is a device that sets off a security system when a bill or switch is pulled.

Q: A(n) ____________________ barrier is a bulletproof plastic shield that can be positioned in front of each tellers station. It acts as a safety device.

Q: John and William are opening a restaurant together. William also works as a business loan officer at a local bank. John has applied to Williams bank for a business loan for the restaurant, and William is responsible for approving the loan. This is a clear example of a a. confidentiality violation. b. money laundering scam. c. check kiting scheme. d. conflict of interest.

Q: Which act of Congress places restrictions on loans by corporations to their executives? a. Sarbanes-Oxley Act of 2002 b. Expedited Funds Availability Act of 1987 c. Check 21 Act of 2003 d. Homeland Security Act of 2002

Q: Junk e-mail is commonly referred to as a. sting. b. spam. c. phish. d. flame.

Q: Which of these is NOT a suggested way to prevent check fraud? a. Leave no extra spaces on a check. b. Sign a check in the presence of a teller. c. Have your Social Security number printed on your checks. d. Reconcile your checking account regularly.

Q: Concealing unlawfully gained funds by converting them into seemingly legitimate income is called a. forgery. b. bouncing a check. c. money laundering. d. kiting a check.

Q: To discourage counterfeiting, the new $20 bill design includes color-shifting ink that changes from ____________________ when the note is tilted. a. copper to blue b. blue to green c. green to gold d. copper to green

Q: Except routine processing, this occupies more resources of the banking industry than any other activity. a. robbery prevention b. fraud prevention c. advertising d. employee benefits

Q: Which of these is the least common type of bank robbery? a. morning glory robbery b. note-passing robbery c. takeover robbery d. early-bird robbery

Q: Marianne is a teller at River City Bank. A bank robbery is underway. Which of the following should Marianne NOT do? a. give the robber what he wants b. try to grab the gun from the robbers hand c. call 911 as soon as possible d. obey the robbers instructions

Q: The physical security of a bank includes all of the following EXCEPT a. building design. b. locking devices. c. transportation security. d. employee friendliness.

Q: War driving refers to illegally using financial information of active duty soldiers for personal gain. a. True b. False

Q: A straw buyer works undercover for a bank to help banks identify cases of illegal house flipping. a. True b. False

Q: Ethics should be the ultimate factor in making decisions in the financial world. a. True b. False

Q: Most banks do not allow employees to accept gifts or money to influence their performance of duties. a. True b. False

Q: A code of ethics is a statement adopted by a company to guide employees to act appropriately. a. True b. False

Q: Spam is a slang term for something that is fraudulent or a swindle. a. True b. False

Q: The Bureau of Justice Statistics (BJS) estimated that more than 7 million people were victims of identity theft in 2014. a. True b. False

Q: Financial institutions lose billions of dollars every year because of money laundering. a. True b. False

Q: Banks lose more money from fraud than from robbery. a. True b. False

Q: Most banks are required by law to install surveillance cameras and alarms. a. True b. False

Q: Employee training is the core of preventing robbery. a. True b. False

Q: Bank robbery was a much more serious problem in the 1930s and 1940s. Today, it rarely occurs. a. True b. False

Q: Define the terms estate, will, and executor. Describe the steps that are usually involved in the settlement of an estate.

Q: Describe the function and purpose of a zero-balance account (ZBA).

Q: Name and briefly describe three common personal health insurance policies available in the United States.

Q: What are the World Bank and the International Finance Corporation (IFC)? Name the functions of the IFC.

Q: What is a sovereign wealth fund?

Q: Briefly define the terms mutual fund and diversification.

Q: What is a living trust?

Q: What is Electronic Data Interchange (EDI)?

Q: What savings can a firm derive from outsourcing?

Q: What is the primary goal of insurance?

Q: Name three special risks for bankers involved in underwriting international businesses.

Q: What organization has primary responsibility for supervising the branches and agencies of foreign banks operating within the United States?

Q: A business accepted a note of $7,000 plus a $500 service fee to be paid in 12 months. Not long after, the business arranged for a local bank to purchase the debt for a factoring fee of 3 percent. What was the cash amount of the factoring fee?

Q: The value of one U.S. dollar equals 0.45 samolians, the currency of the country of Erehwon. What would 135 samolians be worth, converted into U.S. dollars?

Q: Assume the current exchange rate for euros to the U.S. dollar is currently 1.10 euros to 1 U.S. dollar. Convert the value of U.S. goods valued at $55,000 to euros.

Q: ____________________ is the capital raised by a corporation through the issuance of shares entitling holders to an ownership interest in the corporation.

Q: The program that was developed to provide standardized euro payments either within a countrys borders or across countries borders is called ____________________.

Q: Accounts ____________________ refers to short-term debt from purchases on credit that must be paid to suppliers of goods or services, typically within 60 days or less.

Q: The practice of having an outside party supply a product or service to a firm that the firm had been supplying itself is called ____________________.

Q: ____________________ insurance compensates the owner of real estate if his or her clear ownership of property is challenged.

Q: A foreign ____________________ rate is the value of one currency in terms of another.

Q: Money ____________________ is the practice of depositing, investing, or exchanging money in such a way as to conceal its illegal source.

Q: The entire range of political, legal, social, and economic conditions that may put international business at risk is called ____________________ risk.

Q: A(n) ____________________ bank acts as a point of contact for other banks that do not have a branch in the host country.

Q: ____________________ corporations are financial corporations that are federally chartered and allowed to engage only in international banking or other financial transactions related to international business.

Q: The ____________________ charters and supervises U.S. national banks that do international business.

Q: A debt instrument issued for a period of more than one year with the purpose of raising capital through borrowing is called a(n) a. bond. b. annuity. c. certificate of deposit. d. stock.

Q: Which of the following retirement products allows employees to make tax-deferred contributions, which are often matched by the company, to a trust? a. traditional IRA b. variable annuity c. 401 (k) plan d. Roth IRA

Q: The person who creates a trust is called a a. corpus. b. donor. c. beneficiary. d. maker.

Q: The practice of buying debt at a discount is called a. discounting. b. investing. c. financing. d. factoring.

Q: Which of the following bank collection services allows accounts receivable payments to be sent directly to the bank? a. zero-balance accounts b. automated clearing house network c. lockbox service d. none of the above

Q: The type of business insurance that pays for medical care and physical rehabilitation of workers injured on the job is called a. workers compensation. b. short-term disability. c. commercial liability. d. long-term disability.

Q: Which of the following is a provision of the Gramm-Leach-Bliley Act? a. Banks are prohibited from owning brokerage firms. b. Banks are not allowed to sell stock. c. Financial services companies are required to have and provide to customers a written privacy policy. d. All of the above are provisions of the Gramm-Leach-Bliley Act.

Q: The demand for a given currency will be strong if all of the following factors are present EXCEPT a. low inflation. b. low interest rates. c. a positive trade balance. d. a strong economic forecast.

Q: An instrument given by a bank on behalf of a buyer to pay back the bank of the seller a given sum in a given time is called a(n) a. promissory note. b. draft. c. international IOU. d. letter of credit.

Q: The risk posed by variations in exchange rates between countries is called a. currency risk. b. financial risk. c. country risk. d. exchange risk.

Q: Investing in mutual funds usually increases your cost of investing. a. True b. False

Q: Because of the tax advantages, many people use annuities as the basis of their overall financial plan, instead of CDs or savings accounts. a. True b. False

Q: Probate is a court proceeding that settles an estates final debts and formally passes legal title to property from the decedent to his or her heirs. a. True b. False

Q: A trust is an arrangement by which one party holds property on behalf of another party for certain defined purposes. a. True b. False