Which of the following best describes a consequence of money laundering? A) Improved reputation of financial institutions B) Lower crime rates C) Loss of confidence by legitimate i... Which of the following best describes a consequence of money laundering? A) Improved reputation of financial institutions B) Lower crime rates C) Loss of confidence by legitimate investors D) Increased economic growth
Understand the Problem
The question is asking to identify the best option that describes a consequence of money laundering among the given choices. It tests knowledge on the effects of money laundering on financial institutions and the economy.
Answer
Loss of confidence by legitimate investors.
The consequence of money laundering that best fits is the 'Loss of confidence by legitimate investors.'
Answer for screen readers
The consequence of money laundering that best fits is the 'Loss of confidence by legitimate investors.'
More Information
Money laundering negatively impacts economic growth, causes instability in financial markets, and reduces trust among legitimate investors in financial systems because it often conceals illicit transactions.
Tips
A mistake is to think money laundering might improve aspects like economic growth or reputation, but it actually deteriorates trust and increases crime.
Sources
- Negative Effects of Money Laundering on The Economy - sanctionscanner.com
- Consequences of Money Laundering and Financial Crime - ojp.gov
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