Regulations on Conduct of Business MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Regulations on Conduct of Business, a fundamental topic in the field of IC 14 Regulations of Insurance Business. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Regulations on Conduct of Business MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Regulations on Conduct of Business mcq questions that explore various aspects of Regulations on Conduct of Business problems. Each MCQ is crafted to challenge your understanding of Regulations on Conduct of Business principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC 14 Regulations of Insurance Business tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Regulations on Conduct of Business MCQs are your pathway to success in mastering this essential IC 14 Regulations of Insurance Business topic.

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Regulations on Conduct of Business MCQs | Page 17 of 32

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Discuss
Answer: (b).To prevent illegal activities Explanation:Know Your Customer (KYC) norms aim to prevent illegal activities by ensuring that financial institutions have proper identification and verification processes for their customers. This helps in detecting and preventing money laundering activities.
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Answer: (b).To conceal the source of illegitimate income Explanation:The primary goal of money laundering is to conceal the source of illegitimate income, enabling criminals to enjoy the proceeds without risking detection or scrutiny.
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Answer: (c).By disguising its sources, changing its form, or relocating it to less scrutinized locations Explanation:Criminals typically launder money by disguising its sources, changing its form, or relocating it to less scrutinized locations. This process helps to conceal the true origin and ownership of the proceeds of criminal activities.
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Answer: (b).Because it accurately describes the process of turning illegal money into legal money Explanation:The term "money laundering" is considered apt because it accurately describes the process of turning illegal money into legal money through a cycle of transactions.
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Answer: (d).They prefer stable financial systems with weak or ineffective anti-money laundering programs Explanation:Money launderers typically prefer stable financial systems with weak or ineffective anti-money laundering programs. This preference arises from the desire to minimize the risk of detection while moving funds through the system.
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Answer: (c).Illegal arms sales, drug trafficking, tax evasion, smuggling, etc. Explanation:Some common reasons for money laundering include illegal arms sales, drug trafficking, tax evasion, smuggling, human trafficking, embezzlement, bribery, terrorism, and organized crime.
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Answer: (c).Due to the enormity of the amounts involved and the range of illegal activities, including terrorist activities Explanation:The issue of money laundering is gaining global attention due to the enormity of the amounts involved and the range of illegal activities, including terrorist activities.
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Answer: (b).Placement, layering, integration Explanation:The stages of money laundering are placement, layering, and integration.
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Answer: (c).The launderer inserts the illegitimate money into a legitimate financial institution through various means such as depositing cash in the bank or purchasing art or jewelry Explanation:During the placement stage of money laundering, the launderer inserts the illegitimate money into a legitimate financial institution through various means such as depositing cash in the bank or purchasing art or jewelry.
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Answer: (b).By breaking up large amounts of money into smaller sums and depositing them directly into a bank account Explanation:Illegal money is commonly introduced into the financial system during the placement stage of money laundering by breaking up large amounts of money into smaller sums and depositing them directly into a bank account.