Question 1

Federal authorities have agreed that which of the following was a major contributing factor to the savings and loan implosion?

Accepted Answer

A) Careless investment practices 
B) The downturn in the economy 
C) Fraud and insider abuse 
D) Regulation practices

Question 2

What are economic citizenships? Why do individuals obtain these items? Why do countries issue them? What is the negative side of economic citizenships?

Accepted Answer

The answer of What are economic citizenships? Why do individuals...

Question 3

Merrill Lynch was a key player in the subprime mortgage collapse. It had been securitizing subprime loans and then selling them to investors who had borrowed the money to purchase them from Merrill Lynch itself.

Accepted Answer

A) True 
 B)False

Question 4

Steven Wymer testified before ________________ that broker-dealers had aided and abetted him in his schemes.

Accepted Answer

The answer of Steven Wymer testified before ________________ that broker-dealers...

Question 5

The insurance industry is largely regulated by individual states.

Accepted Answer

A) True 
 B)False

Question 6

Though thrift failures occurred nationwide, what two states accounted for the preponderance of the worst thrift frauds?

Accepted Answer

A) Oklahoma and Texas 
B) Florida and California 
C) New York and California 
D) California and Texas

Question 7

Which of the following is not true about the crimes identifies in the whirlwind tour of financial crimes?

Accepted Answer

A) Most involved million-dollar losses. 
B) In all the cases individuals received prison sentences. 
C) Most of those convicted were mid-level managers. 
D) None involved insurance companies.

Question 8

The Keating Five were:

Accepted Answer

A) the five institutions controlled by Keating. 
B) Keating and his four relatives who looted Lincoln Savings and Loan. 
C) five regulators bribed by Keating. 
D) United States Senators.

Question 9

Federal authorities have agreed that careless investment practices were a major contributing factor to the savings and loan implosion.

Accepted Answer

A) True 
 B)False

Question 10

Actions by the government that contributed to the collapse of the savings and loan industry included all of the following except:

Accepted Answer

A) increasing down payment requirements. 
B) commercial real estate loans. 
C) permitting money market mutual funds. 
D) deregulation.

Question 11

Estimates of the cost of the savings and loan disaster range from a mere ______________ to ______________.

Accepted Answer

A) $500 million; $20 billion 
B) $500 billion; $750 billion 
C) $200 billion; $1.4 trillion 
D) $20 billion; $500 billion

Question 12

Match between columns
                        Premises: Alan Bond
Nominee loans
Reciprocal lending
Alan Teale
Linked financing
Land flips
Financial institutions
The Keating Five

Accepted Answer

The Answer of Took advantage of the professional sports players is...

Question 13

Unscrupulous insurance companies can also cheat the public by claiming to have assets they do not have, or assets that are worth more than they really are. The reason companies do this is:

Accepted Answer

A) to obscure money received from illegal activities. 
B) to conceal diversion of premiums. 
C) to meet capitalization requirements. 
D) to lure investors.

Question 14

Subprime ________________ fraud is one of the main reasons for the current national surge in foreclosures.

Accepted Answer

The answer of Subprime ________________ fraud is one of the...

Question 15

Discuss what pension fund fraud is. Why do you think this crime is especially heinous? Who are the victims of pension fund fraud?

Accepted Answer

The answer of Discuss what pension fund fraud is. Why...

Question 16

Steve Wymer's Institutional Treasury Management lost $174 million. Investors were mainly:

Accepted Answer

A) teachers with retirement funds. 
B) individuals with private mutual funds. 
C) municipalities and government agencies. 
D) individual investors with IRAs.

Question 17

An example of premium diversion would be:

Accepted Answer

A) using premiums to pay excessive salaries to executives. 
B) using premiums to pay operating costs. 
C) using premiums collected to pay claims. 
D) failure to pay legitimate claims.

Question 18

Reinsurance is a legitimate business practice in the insurance industry. It becomes a problem when:

Accepted Answer

A) insurance companies fail to adequately diversify their investments. 
B) insurance companies do not spread possible losses adequately. 
C) reinsurers are undercapitalized. 
D) insurance companies use reinsurers that are located outside the United States.

Question 19

First Pension Corporation investments turned out to be a ________________ scheme.

Accepted Answer

The answer of First Pension Corporation investments turned out to...

Question 20

The biggest losers in the Institutional Treasury Management case were:

Accepted Answer

A) stockbrokers. 
B) taxpayers. 
C) banks. 
D) the public.

Exam 8: Fiduciary Fraud

Federal authorities have agreed that which of the following was a major contributing factor to the savings and loan implosion?

What are economic citizenships? Why do individuals obtain these items? Why do countries issue them? What is the negative side of economic citizenships?

Merrill Lynch was a key player in the subprime mortgage collapse. It had been securitizing subprime loans and then selling them to investors who had borrowed the money to purchase them from Merrill Lynch itself.

Steven Wymer testified before ________________ that broker-dealers had aided and abetted him in his schemes.

The insurance industry is largely regulated by individual states.

Though thrift failures occurred nationwide, what two states accounted for the preponderance of the worst thrift frauds?

Which of the following is not true about the crimes identifies in the whirlwind tour of financial crimes?

The Keating Five were:

Federal authorities have agreed that careless investment practices were a major contributing factor to the savings and loan implosion.

Actions by the government that contributed to the collapse of the savings and loan industry included all of the following except:

Estimates of the cost of the savings and loan disaster range from a mere to .

Match the key terms to the descriptions below. Use each description only once.

Unscrupulous insurance companies can also cheat the public by claiming to have assets they do not have, or assets that are worth more than they really are. The reason companies do this is:

Subprime ________________ fraud is one of the main reasons for the current national surge in foreclosures.

Discuss what pension fund fraud is. Why do you think this crime is especially heinous? Who are the victims of pension fund fraud?

Steve Wymer's Institutional Treasury Management lost $174 million. Investors were mainly:

An example of premium diversion would be:

Reinsurance is a legitimate business practice in the insurance industry. It becomes a problem when:

First Pension Corporation investments turned out to be a ________________ scheme.

The biggest losers in the Institutional Treasury Management case were: