BMO Compliance & Ethical Standards

Question 1

What is the primary purpose of compliance in a financial institution?

Accepted Answer

To prevent legal violations

Answer

To increase sales

Answer

To reduce customer engagement

Answer

To limit business growth

Question 2

Which ethical principle is most important in financial decision-making?

Accepted Answer

Integrity

Answer

Deception

Answer

Excessive risk-taking

Answer

Lack of accountability

Question 3

What is the role of an internal audit in compliance?

Accepted Answer

To monitor regulatory adherence

Answer

To increase company profits

Answer

To avoid customer engagement

Answer

To reduce training programs

Question 4

Which action is considered unethical in corporate finance?

Accepted Answer

Insider trading

Answer

Following transparency policies

Answer

Conducting external audits

Answer

Implementing anti-fraud measures

Question 5

Why is data privacy crucial in financial services?

Accepted Answer

To ensure regulatory compliance

Answer

To sell customer data

Answer

To avoid record-keeping

Answer

To eliminate audits

Question 6

What is the key benefit of ethical leadership in an organization?

Accepted Answer

Increases organizational trust

Answer

Encourages fraudulent behavior

Answer

Weakens compliance policies

Answer

Reduces corporate transparency