Which of the Following Statements About the Bernie Madoff Ponzi

question 104

Multiple Choice

Which of the following statements about the Bernie Madoff Ponzi scheme is false?

• A)Madoff took advantage of his unique ties to the investment community (he was the former Chair of the NASDAQ)to create trust and encourage further investments.
• B)Madoff began perpetrating the fraud shortly before passage of the Sarbanes-Oxley Act,and the provisions of that Act ultimately led to discovery of the fraud.
• C)Madoff was sentenced to 150 years in prison.
• D)The estimated amount missing from client accounts,including fabricated gains,was almost $65 billion.

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Definitions:

Self-Serving Bias

A common cognitive bias where individuals attribute positive events to their own character but attribute negative events to external factors.

Actor-Observer Effect

A cognitive bias in which people tend to attribute their own actions to external circumstances but attribute others' actions to their personalities or character.

Primacy Effect

The tendency to remember the first pieces of information in a series better than the information in the middle.

Computer Programming

The process of designing, writing, testing, debugging, and maintaining the source code of computer programs.