10 Questions
Which of the following best describes the principal-agent problem?
A situation where banks act in their own self-interest rather than in the interest of their clients
Which of the following is an example of unethical behavior in banking?
Engaging in money laundering
What is the difference between internal and external compliance in banking?
Internal compliance refers to a bank's adherence to its own ethical standards, while external compliance refers to adherence to external regulations
Why do criminal enterprises seek to use banks to launder illegally acquired assets?
Because banks provide anonymity and legitimacy to illegal funds
What is the relationship between ethics, regulation, and compliance in banking?
Ethics guides regulation and compliance in banking
Which of the following is a key reason why banking is a regulated industry?
To prevent unethical behavior
What is the term used to describe the process of using banks to launder illegally acquired assets?
Money laundering
Which of the following is an example of money laundering in popular culture?
Instances of money laundering since 2000
Why did Banking Institutes not take root?
Lack of trust
What will candidates learn after completing this module?
How to prevent unethical behavior in banking
Test your knowledge on ethics and compliance in the business world with this quiz. Explore topics such as the principal-agent problem, ethical and unethical behavior, case studies on financial institutions, payment protection insurance, compliance, and money laundering. Challenge yourself and gain a deeper understanding of these important concepts.
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