Name:
Class:
Date:
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1. Bank robbery was a much more serious problem in the 1930s and 1940s. Today, it rarely occurs.
a.
True
b.
False
ANSWER:
False
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.1.1 – LO: 11.1.1
2. Employee training is the core of preventing robbery.
a.
True
b.
False
ANSWER:
True
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.1.1 – LO: 11.1.1
3. Most banks are required by law to install surveillance cameras and alarms.
a.
True
b.
False
ANSWER:
True
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.1.1 – LO: 11.1.1
4. Banks lose more money from fraud than from robbery.
a.
True
b.
False
ANSWER:
True
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.3.1 – LO: 11.3.1
5. Financial institutions lose billions of dollars every year because of money laundering.
a.
True
b.
False
ANSWER:
False
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.3.1 – LO: 11.3.1
6. The Bureau of Justice Statistics (BJS) estimated that more than 7 million people were victims of identity theft in 2014.
a.
True
b.
False
ANSWER:
True
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.4.1 – LO: 11.4.1
7. Spam is a slang term for something that is fraudulent or a swindle.
a.
True
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Class:
Date:
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Page 2
b.
False
ANSWER:
False
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.4.2 – LO: 11.4.2
8. A code of ethics is a statement adopted by a company to guide employees to act appropriately.
a.
True
b.
False
ANSWER:
True
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.2.1 – LO: 11.2.1
9. Most banks do not allow employees to accept gifts or money to influence their performance of duties.
a.
True
b.
False
ANSWER:
True
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.2.1 – LO: 11.2.1
10. Ethics should be the ultimate factor in making decisions in the financial world.
a.
True
b.
False
ANSWER:
True
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.2.1 – LO: 11.2.1
11. A straw buyer works “undercover” for a bank to help banks identify cases of illegal house flipping.
a.
True
b.
False
ANSWER:
False
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.3.2 – LO: 11.3.2
12. War driving refers to illegally using financial information of active duty soldiers for personal gain.
a.
True
b.
False
ANSWER:
False
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.4.2 – LO: 11.4.2
13. The physical security of a bank includes all of the following EXCEPT
a.
building design.
b.
locking devices.
c.
transportation security.
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Class:
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d.
employee friendliness.
ANSWER:
d
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.1.1 – LO: 11.1.1
14. 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 robber’s hand
c.
call 911 as soon as possible
d.
obey the robber’s instructions
ANSWER:
b
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.1.2 – LO: 11.1.2
15. 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
ANSWER:
c
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.1.2 – LO: 11.1.2
16. 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
ANSWER:
b
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.3.1 – LO: 11.3.1
17. 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
ANSWER:
d
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.3.1 – LO: 11.3.1
18. Concealing unlawfully gained funds by converting them into seemingly legitimate income is called
Name:
Class:
Date:
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a.
forgery.
b.
bouncing a check.
c.
money laundering.
d.
kiting a check.
ANSWER:
c
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.3.1 – LO: 11.3.1
19. 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.
ANSWER:
c
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.3.1 – LO: 11.3.1
20. Junk e-mail is commonly referred to as
a.
sting.
b.
spam.
c.
phish.
d.
flame.
ANSWER:
b
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.4.2 – LO: 11.4.2
21. 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
ANSWER:
a
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.2.2 – LO: 11.2.2
22. John and William are opening a restaurant together. William also works as a business loan officer at a local bank. John
has applied to William’s 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.
ANSWER:
d
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Class:
Date:
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POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.2.1 – LO: 11.2.1
23. A(n) ____________________ barrier is a bulletproof plastic shield that can be positioned in front of each teller’s
station. It acts as a safety device.
ANSWER:
bandit
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.1.1 – LO: 11.1.1
24. A bill ____________________ is a device that sets off a security system when a bill or switch is pulled.
ANSWER:
trap
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.1.2 – LO: 11.1.2
25. ____________________ is a deception deliberately practiced to secure unfair or unlawful gain.
ANSWER:
Fraud
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.3.1 – LO: 11.3.1
26. 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.
ANSWER:
watermark
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.3.1 – LO: 11.3.1
27. Check ____________________ requires opening accounts at two or more banks and using the “float time” of
available funds to create fraudulent balances.
ANSWER:
kiting
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.3.1 – LO: 11.3.1
28. Purposefully writing checks on closed accounts is called ____________________, or closed account fraud.
ANSWER:
paperhanging
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.3.1 – LO: 11.3.1
29. ____________________ is the act of sending a user an e-mail falsely claiming to be a legitimate enterprise in an
attempt to solicit private information.
ANSWER:
Phishing
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.4.2 – LO: 11.4.2
30. A computer program that monitors and limits incoming and outgoing online transmissions is called a(n)
____________________.
ANSWER:
firewall
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Class:
Date:
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POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.4.2 – LO: 11.4.2
31. A(n) ____________________ dilemma involves a situation that makes a person question what is the right or wrong
thing to do.
ANSWER:
ethical
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.2.1 – LO: 11.2.1
32. A(n) ____________________ of interest occurs when two interests are at cross-purposes.
ANSWER:
conflict
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.2.1 – LO: 11.2.1
33. An electronic warning placed on your accounts to monitor for suspicious financial activity is called a(n)
____________________.
ANSWER:
fraud alert
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.4.3 – LO: 11.4.3
34. Jerry’s Garage accepted $700 in counterfeit bills for a repair job. The company’s insurance policy covers losses from
counterfeit money up to $1,000 with a $250 deductible. What is the out-of-pocket loss experienced by Jerry’s Garage?
ANSWER:
$250
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.3.1 – LO: 11.3.1
35. An online criminal deposits $10,000 into a victim’s 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?
ANSWER:
$133,000
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.3.1 – LO: 11.3.1
36. 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?
ANSWER:
$1,245
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.1.1 – LO: 11.1.1
37. How should surveillance cameras be positioned in a bank for maximum effectiveness?
ANSWER:
Surveillance cameras should be placed so they are seen by possible robbers and positioned to
ensure a full front photograph of the robber.
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.1.1 – LO: 11.1.1
Name:
Class:
Date:
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38. The Second National Bank has just been robbed. What should bank employees do with the demand note left behind by
the robber? Why?
ANSWER:
Employees should keep the demand note for possible fingerprint identification.
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.1.2 – LO: 11.1.2
39. What is the difference between check forgery and check counterfeiting?
ANSWER:
Check forgery involves the passing or making use of a check or other document with the
intent to defraud. Check counterfeiting can mean either entirely creating a check with desktop
publishing equipment or simply duplicating a check with advanced color photocopiers.
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.3.1 – LO: 11.3.1
40. What is identify theft?
ANSWER:
Identity theft involves “stealing” someone’s identity after learning certain personal
information to gain access to the person’s bank accounts.
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.4.1 – LO: 11.4.1
41. What can banks do to protect computer records from computer hackers and other cyberthieves?
ANSWER:
Banks should use tools such as anti-virus software and autobots, programs that constantly
monitor all transactions looking for abnormalities. Firewalls (programs that monitor and limit
incoming and outgoing transactions) should also be used.
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.4.2 – LO: 11.4.2
42. Define ethics.
ANSWER:
Ethics refers to beliefs that distinguish right from wrong.
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.2.1 – LO: 11.2.1
43. Briefly describe some of the safety devices mentioned in the text that are used to physically secure modern banks.
ANSWER:
Bandit barriers are bulletproof plastic shields that are positioned in front of each teller’s
station. Pop-up security screens, which rise out of the counter in a fraction of a second, are
also used. Time-delay locks that require a PIN number and allow access to the safe only
during specific hours can be installed as well.
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.1.1 – LO: 11.1.1
44. What is the difference between a morning glory bank robbery and a takeover bank robbery?
ANSWER:
Morning glory robberies take place before the bank opens. Robbers might break in and wait
for employees to arrive or seize the employees outside the bank as they arrive for work. In a
takeover robbery, two or more robbers carry weapons and invade the bank.
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.1.2 – LO: 11.1.2
Name:
Class:
Date:
45. Briefly describe some signs of counterfeit checks.
ANSWER:
Lack of perforations, a low number, or no address for the customer or bank can be signs of a
counterfeit check. Stains or discoloration perhaps caused by erasures or alterations are other
signs. If the Magnetic Ink Character Recognition coding number printed along the bottom of
the check is shiny, does not match the check number, or is missing, the check might be
counterfeit.
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.3.1 – LO: 11.3.1
46. Discuss what is generally covered in the confidentiality section of a bank’s code of ethics.
ANSWER:
Banking business is confidential, so only authorized individuals can receive information.
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.2.1 – LO: 11.2.1
47. Describe two distinct ways websites can be used for identity theft.
ANSWER:
(1) Fake websites can be designed to look like authentic businesses. When an unsuspecting
consumer enters credit card information to pay for a product, the thieves can use that credit
card information for personal gain. (2) Exploiting weaknesses in the Domain Name System
can allow thieves to redirect consumers from legitimate websites to non-legitimate websites.
Once the consumer enters personal credit information into the non-legitimate location, the
thieves can use that information to illegally make purchases.
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.4.2 – LO: 11.4.2
48. What are the powers of the Public Company Accounting Oversight Board, established by the Sarbanes-Oxley Act of
2002?
ANSWER:
The board has the power to set rules, investigate suspected wrongdoing, punish violators, and
conduct regular inspections of accounting firms.
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.2.2 – LO: 11.2.2
49. What is a straw buyer?
ANSWER:
A straw buyer is someone who agrees to use his or her personal information to buy the home
at a falsely inflated price. The straw buyer agrees to state that they intend to live in the home
even though their actual intent is to flip the home.
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.3.2 – LO: 11.3.2
50. Discuss some common sense precautions you can take to prevent becoming a victim of identity theft.
ANSWER:
Keep your radar up at all times regarding any suspicious activities or inquiries. If someone
unfamiliar is walking around your neighborhood and looking into mailboxes, keep an eye on
them. If you think they are stealing mail, contact law enforcement authorities. Never provide
account access codes, Social Security numbers, or other personal identifying information
over the phone or online unless you are absolutely certain of the validity of the parties with
whom you are interacting. Shred all documents containing personal identifying
information—including offers for new credit that arrive in the mail.
POINTS:
1
Name:
Class:
Date:
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LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 11.4.3 – LO: 11.4.3