CFE-Law ACFE Exam Lab Questions

The courts are allowed to consider both codified statutes and previous court decisions but are bound by neither

The courts are bound by both previous court decisions and codified principles or statutes

The courts are bound primarily by previous court decisions to reserve legal issues

The courts are bound by codified principles or statures but are not bound by previous court decisions

A suitability violation occurs when a broker does not carry out a trade requested by or promised to a customer

A suitability violation occurs when a broker recommends an investment or investment strategy that is inconsistent with the client's objectives

A suitability violation occurs when a broker trades in a client's account without obtaining prior approval for making the transaction(s).

A suitability violation occurs when a broker enters into transactions and manages a client's account for the purpose of generating excessive commissions

MSBs tend to have a tower money laundering risk than other financial institutions.

MSBs are generally less strictly regulated than traditional financial institutions.

A check cashing company is classified as an MSB.

A currency exchange is classified as an MSB.

True

False