The Basics of Organized Crime
What is organized crime?
It is planned criminal activities that are controlled by powerful groups
What is the black market?
A place where economic transactions are illegal
What does organized crime lead to?
The creation of false firms
What are the 4 economic systems?
Traditional, command, market and mixed
Is there a true solution to organized crime?
No
Where did the notion of organized crime originate from?
Sicily
Underground activity accounts for how much of the total economy in developing countries?
One third
What does the removal of circulating money force the Bank of Canada to do?
Change its policies
Why does a traditional economy rely on organized crime?
Bring in money that they lack in order to support their communities and people
What can the government do to try and stop organized crime?
They can arrest Mafia officials and monitor their financial transactions to check for money laundering
What are 2 of the 6 types of organized crime?
Answers may vary:
money laundering, asset misappropriation, counterfeiting and contraband, fraud and extortion, human trafficking, cybercrime
What happens to the government's monetary policies?
They are affected by organized crime and lose billions of dollars
What happens to the interest rate and why?
It is decreased to compensate for the loss of money
Why does a market economy rely on organized crime?
To replace all of the money that producers and consumers invested into the economy
What must the government and Bank of Canada become aware of?
The idea of money laundering that occurs under the table