Homework answers / question archive / Florida International University FIN 3403 Chapter 3 Study Guide 1)To finance its operations, the IRA developed an organized crime network known as a:   a

Florida International University FIN 3403 Chapter 3 Study Guide 1)To finance its operations, the IRA developed an organized crime network known as a:   a

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Florida International University

FIN 3403

Chapter 3 Study Guide

1)To finance its operations, the IRA developed an organized crime network known as a:

 

a.            mafia discovery

b.            laundering discovery c. Capone discovery

d. Dillinger discovery

 

2.            Putting criminal proceeds in the legitimate financial system is known as:

 

a.            placement

b.            layering

c.             integration

d.            exchange

 

3.            Concealing the source of illegal income in confusing, sometimes multiple financial actions is known as:

 

a.            placement b. layering

c. integration

d. exchange

 

4.            Presenting illegally gained money in the formal economic system as if it were the result of a legal activity is known as:

 

a.            placement

b.            layering c. integration

d. exchange

 

5.            Which of the following is not a way that money is laundered?

 

a.            placement

b.            layering

c.             integration d. exchange

 

6.            Which of the following terrorist organizations is most likely to use the black market peso exchange?

 

a.            FARC

b.            PKK

c.             IRA

d.            alQaeda

 

7.            Which of the following is the process of converting the proceeds of crime into assets that can be used in the formal economy? (p. 75)

 

a.            Layering

b.            Placement

c.             Money Laundering

d.            Integration

 

8.            The Economist reports that terrorism is in terms of the causalities and destruction terrorist events cause. (p. 53)

 

a.            cost-neutral

b.            cost-loss

c.             cost-effective

d.            cost-control

 

 

9.            Which of the following is not an example of layering money? (p. 54)

 

a.            converting cash into a money order

b.            putting the money in a checking account

c.             buying prepaid charge cards

d.            wiring cash to a financer

 

10.          Which of the following refers to the methods used to fund terrorist groups or operations? (p. 75)

 

a.            Money laundering b. Terrorist financing

c. Narcoterrorism

d. Terrorist funding

 

11.          Which of the following is not a way terrorists finance their organization and operations? (p. 56)

 

a.            murder

b.            petty theft

c.             robbery

d.            kidnapping

 

12.          According to Freeman, which of the following is not needed in an economic theory that accounts for the financing of terrorist organizations and operations? (p. 59)

 

a.            Need for money

b.            Amount of money needed c. System of credit

d. Source of income

 

13.          Some analysts believe the primary reason that officials do not understand the financing process is that they lack a: (p. 58)

 

a.            profile

b.            theoretical framework

c.             psychological framework

d.            social framework

 

14.          Which of the following activities do terrorist organizations usually not engage in to fund their operations? (p. 64)

 

a.            Smuggling

b.            Fraud schemes

c.             Charitable donations

 

d.            Money laundering

 

15.          After its long experience with the Irish Republican Army,              was one of the first nations to address terrorist financing. (p. 60)

 

a.            The United Kingdom

b.            Ireland

c.             The United States

d.            Italy

 

16.          At the urging of the United States and the United Kingdom, the UN General Assembly adopted the International Convention for the              in December, 1999. (p. 61)

 

a.            Financial Action Task Force on Money Laundering b. Suppression of the Financing of Terrorism

c. Peaceful End of Financing Terrorism

d. United Anti-Financing and Money Laundering Agenda

 

17.          The        was a resolution passed by the United Nations in 1990 (and strengthened from 2001-2006) urging member states to adopt measures to hamper money laundering. (p. 61)

 

a.            Financial Action Task Force on Money Laundering

b.            Suppression of the Financing of Terrorism

c.             Peaceful End of Financing Terrorism

d.            United Anti-Financing and Money Laundering Agenda

 

18.          Counterfeiting and fraud are common weapons of the  . (p. 64)

 

a.            Asian extremists

b.            South American extremists c. American extremist right

d. Eastern Europe extremists

 

19.          Which of the following is an investigative tool used to track money used in illegal activities? (p. 64)

 

a.            Criminological accounting

b.            Investigative accounting c. Forensic accounting

d. Layering accounting

 

20.          According to Marighella,               is the term used for armed robbery. (p. 64)

 

a.            excavation

b.            extermination

 

c.             elimination d. expropriation

 

21.          Which of the following terrorist organizations ran cigarettes from North Carolina to Michigan and used some of the profits to fund operations in Lebanon? (p. 65)

 

a.            Hezbollah

b.            Hamas

c.             Abu Nidal

d.            al Qaeda

 

22.          Carlos Marighella argued that “urban warfare” begins with a campaign of . (p. 64)

 

a.            expropriation

b.            initiation

c.             money laundering

d.            investment

 

23.          are the most frequent legal activities used by terrorists to fund their activities. (p. 76)

 

a.            For-profit education facilities

b.            Stock trading

c.             Charities and business operations

d.            Real estate investments

 

24.          By 2012, the Islamic Maghreb had become the primary source of income for al Qaeda by smuggling: (p. 65)

 

a.            cocaine

b.            opium c. tobacco

d. alcohol

 

25.          According to David Carter, terrorists use               for logistics, including financing activities. (p. 66)

 

a.            existing criminal networks

b.            newly created criminal networks

c.             charities

d.            banks

 

26.          Which of the following countries is NOT a member of the Triborder Region of Latin America? (p. 67)

 

a.            Brazil

b.            Paraguay

 

c.             Chile

d.            Argentina

 

27.          Both terrorists and criminals take advantage of political instability in regions like the

                in South America. (p. 67)

 

a.            Brazilian Northeast b. Triborder Region

c. Trifecta Region

d. Chilean countryside

 

28.          According to Global Witness, al Qaeda spent 10 years moving into unregulated                 

trading in West Africa. (p. 67)

 

a.            prostitution b. diamond

c. drug

d. weapons

 

29.          A system of exchanging money based on trust relationships between money dealers is called    . (p. 68)

 

a.            money laundering b. the hawala system

c. charitable fronts

d. expropriation

 

30.          Which of the following is NOT an advantage of the Hawala system? (p. 68-69)

 

a.            A record of the money is kept

b.            Money crosses international borders with ease

c.             It is based on trust

d.            No tax records exist

 

31.          Which of the following is based in the belief that international trade barriers should be removed so that commerce and industry can develop in an international free market? (p. 70)

 

a.            The new economy b. Globalization

c. Financial terrorism

d. Global industry

 

32.          According to Loretta Napoleoni,                is a term that describes the evolution of terrorist financing from the beginning strategies of the cold war to the present. (p. 70)

 

a.            the new economy of terrorism

b.            globalization

c.             financial terrorism

d.            the global industry

 

33.          According to Mario Ferrero, what do modern radical Islamic groups use as a means of providing economic stability? (p. 71)

 

a.            Violent activity

b.            Unregulated diamond trading

c.             Drug trading

d.            Document fraud

 

34.          Which of the following theories suggests that counterterrorism policies should be aimed at providing the world’s people with economic stability, opportunity, and participation in the mainstream economy? (p. 72)

 

a.            Microeconomic theory

b.            Globalization   theory c. Macroeconomic theory

d. Global economic theory

 

35.          Which of the following is NOT an economic policy to counter terrorism? (p. 72)

 

a.            Supporting states in threat of failure

b.            Increasing loans to Third World Nations

c.                             Providing opportunities for people to participate/benefit from economic systems

d.            Eliminating underground economic networks

 

36.          The        aspects of terrorism have had a great influence upon the changing nature of the international economy. (p. 70)

a.            religious b. financial

c. political

d. social

 

37.                           is a term describing a political situation where a government nominally controls its own state but where large regions are either anarchic or under the control of others. (p. 71)

 

a.            Globalization b. Shell state

c. Weak state

d. Failed state

 

38.          An area outside of a government’s control is known as a(n): (p. 71)

 

a.            anti-state b. failed state

c. shell state

d. anarchic state

 

39.          Which of the following terrorist organizations changed the structure of terrorist financing by trying to gain control of the economy? (p. 71)

 

a.            FARC b. ETA

c. IRA

d. PKK

 

40.          According to Napoleoni, modern terrorism is an international force supported by groups in         that continually change both their organizational structures and political goals to maintain income from an international underground economy. (p. 71)

 

a.            anti-states

b.            failed states c. shell states

d. anarchic states

 

41.          The new economy of terrorism is a term used by Napoleoni to describe the evolution of terrorist financing from the beginning strategies of the       to the present. (p. 70)

 

a.            Cold War

b.            French Revolution

c.             Civil War

d.            Vietnam War

 

42.          The political economy of terrorism involves groups that have the ability to act autonomously in and states. (p. 76)

 

a.            legitimate, illegitimate

b.            active, inactive c. shell, failed

d. passive, active

 

43.          According to David Kaplan,          are responsible for the bulk of terrorist financing. (p. 74)

 

a.            charities

b.            drugs

c.             crimes

 

d.            all of the above

 

44.          What country is the primary source of heroin in Europe? (p. 73)

 

a.            Afghanistan

b.            Iraq

c.             Saudi Arabia

d.            China

 

45.          What is the term used to refer to groups using either terrorist tactics to support drug operations or drug-trade profits to finance terrorism? (p. 72)

 

a.            Narcoterrorism

b.            Narcotactics

c.             Narcotic terror

d.            Narcotrafficking

 

46.          According to Rachel Ehrenfeld, terrorists are involved in the international production and distribution of: (p. 73)

 

a.            tobacco

b.            counterfeit goods c. drugs

d. textiles

 

47.          According to the               , drugs were not linked to al Qaeda’s attack on New York and Washington D.C. (p. 74)

 

a.            Bush Administration

b.            Obama Administration c. 9/11 Commission

d. United Nations

48.          Opponents of narcoterrorism argue that governments use the term to increase their own power by defining                as terrorists. (p. 76)

 

a.            common criminals

b.            Muslims

c.             Mexicans

d.            diplomats