AnswersPersonal FinanceConsumer Protection and Financial Fraud

Consumer Protection and Financial Fraud — Quiz Answers

10 verified answers1 views
1
Free Preview

Why are scams effective?

A
Provide accurate info
B
Use urgency and trust
C
Eliminate risk
D
Increase regulation
3

How does regulation build trust?

A
Requires accurate information
B
Guarantees profits
C
Removes risk
D
Increases returns
4

What is fraud?

A
Legal investment
B
Deception for gain
C
Market trend
D
Risk level
5

Why is insider trading illegal?

A
Removes taxes
B
Reduces returns
C
Unfair advantage
D
Increases risk
6

What is identity theft?

A
Investing in stocks
B
Legal financial transaction
C
Using someone’s personal information without permission
D
Paying taxes
8

What does FDIC protect?

A
Bonds
B
Taxes
C
Stocks
D
Bank deposits
9

What is regulation?

A
Risk level
B
Market trend
C
Rules ensuring fairness
D
Investment return
10

What is a Ponzi scheme?

A
Paying old investors with new money
B
Government program
C
Bank account
D
Investment growth

Did you find these answers helpful?