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WorksheetsOversight of Financial Markets
Total questions: 20
Worksheet time: 3hrs 20mins
What does "SEC" stand for?
Southeastern Conference
Securities and Energy Commission
Stock Market and Exchange Commission
Securities and Exchange Commission
Publicly Traded Companies are required to file financial statements and documents with which entity?
FDIC - Federal Deposit Insurance Corporation
FRS - Federal Reserve System
SEC - Securities and Exchange Commission
REIT - Real Estate Investment Trust
The SEC was created in response to what event?
President Roosevelt's New Deal
Creation of the New York Stock Exchange
The Stock Market Crash of 1929
WWI
The Securities and Exchange Commission is responsible for...
Bank and Credit Union oversight
The free market economy and the money supply
National Defense and the budget
regulating security markets and protecting investors
What is the primary role of the Securities Exchange commission?
To ensure the money supply
To protect investors
To establish interest rates
To manage the national economy
Which of the Following correctly describes the Securities and Exchange Commission?
A governmental agency hat regulates federal spending
A private commission that exchanges money
A federal agency that maintains fair and efficient markets
An Interest group that lobbies for regulations in economics
What are the 2 tasks of the SEC?
1. Ensure companies make truthful statements and 2. ensure companies treat investors honestly
1. Ensure companies selling securities dont own stock in them or 2. work for them
1. Ensure companies do not cheat on their taxes and 2. report all income
1. Ensure companies follow standard accounting practice and 2. expense procedures
What does "FINRA" stand for?
Federal Insurance Regulatory Advisory
Financial Industry Regulatory Authority
Federal Institute for Religious Authority
None of the Answers are Correct
FINRA regulates:
Investment Advisors
Financial Advisors
Stock Brokers
All Options are Correct
FINRA is a Government Organization that oversees the SEC
True
False
Securities Fraud, also known as Stock or Investment Fraud, involves:
"Ponzi" or "Pump and Dump" Schemes targeted at investors
Insider Trading
Misrepresenting information investors use to make decisions
All Options are Correct
The SEC is a government agency that oversees FINRA
True
False
While the SEC and FINRA both share the role of protecting investors, key differences between the two include:
The SEC regulates Security Markets and FINRA regulates Brokers and firms
The SEC regulates public corporations only, FINRA deals solely with private companies
The SEC is a for-profit private organization and FINRA is a non-profit government agency
All of the Answers are correct
Sarbanes Oxley was instituted as a direct result of:
The corporate scandals of Enron, Worldcom, Tyco and others
The Housing Crash of 2008
The terrorist attacks Sept 11, 2001
Democrats taking over both houses of Congress in 2002
The Sarbanes Oxley Act of 2002 mandates:
Banks to offer competitive rates to borrowers
Corporate officers must personally certify financial statements in writing
Bank deposits are insured up to $250,000
None of the Options are Correct
"Money Laundering" is the process of:
Ensuring income is earned legally
funneling "dirty" money through transactions to make it appear legitimate
Converting Crypto to US Currency
Verifying all taxes have been paid before distributing dividends
The Bank Secrecy Act prevents:
Criminals from using financial institutions to launder or hide money
Banks from charging illegally high interest rates to consumers
Financial Institutions from hiding profits to fool shareholders
All Answers are Correct
The Bank Secrecy Act requires financial institutions to report suspicious cash transactions over what amount?
$50,000
$10,000
$100,000
$1 Million
The Gramm Leach Bliley Act requires:
Banks to make a profit
Banks to offer credit cards to consumers at whatever rate they want
Banks to notify customers of information-sharing practice + allow opt-outs
All of the Answers are correct
The "Red Flags Rule" mandates that companies must disclose data breaches to customers, protect consumer data, prevent fraud and identity theft, and ensures training and compliance to spot identity theft and leak issues
True
False
