SIE Understanding Trading, Customer Accounts and Prohibited Activities Question 12: Answer and Explanation

Question: 12

Which of the following describes money laundering?

• A. Concealing the source of illegally-obtained money
• B. Embezzling money from an employer
• C. Extortion through threatened exposure of another person's misdeeds
• D. Bribery of an elected official through hidden political contribution

Correct Answer: A

Explanation:

A: Choice A describes money laundering. Choices B, C, and D describe improper uses of money other than money laundering.