Which of the Following Statements Is True About the Sarbanes-Oxley

question 10

Multiple Choice

Which of the following statements is true about the Sarbanes-Oxley Act of 2002?

• A) It prohibits any one institution from acting as any combination of an investment bank, a commercial bank, and an insurance company.
• B) It allows for the full or partial disclosure of previously unreleased information and documents controlled by any public enterprise.
• C) It requires financial institutions to keep records of cash purchases of negotiable instruments and to report suspicious activity that might signify money laundering, tax evasion, or other criminal activities.
• D) Areas covered under this act include maintaining generally accepted accounting practices and ensuring company structure and processes that enhance integrity and reputation.
• E) It encourages commercial banks and savings associations to help meet the needs of borrowers in all segments of their communities, including low- and moderate-income neighborhoods.

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Definitions:

Account

A record or report that tracks financial transactions and the financial position of an individual, company, or other organization.

Interest Rate

The levy, stipulated as a percentage of the principal, made by lenders for borrowers employing their assets.

Account Balance

The amount of money present in a financial repository, such as a checking or savings account, at any given time.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage rate.