Choose wisely. There is only one correct answer to each question.
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1.
Being paid to recruit others to a sales opportunity is sufficient to indicate that the opportunity is actually a pyramid scheme.
False. Though it's a part of a pyramid scheme by nature, being paid to recruit others is not by itself an indicator, as even legitimate firms may offer fees for recruitment.
2.
Why might a money-transfer opportunity require that you sign a non-disclosure agreement?
To prevent you from discussing the deal with other people. This is a common tactic in investment fraud.
3.
Romance scammers try to prey on our _______.
Any of the above. A romance scammer takes advantage of our basic human goodness in order to take money from us.
4.
Creating artificial demand for a stock and then selling it to make a quick profit is known as _______.
Pump and dump. Pumping and dumping means creating artificial demand and then selling in order to gain from it.
5.
A blockchain is a transparent ledger of _______ transactions that anyone can view.
Transactions. Blockchains maintain a decentralized, secure record of transactions.
6.
Which of the following descriptions of an investment is a telephone scammer most likely to use?
"Risk-free". Scammers often describe their investments as risk-free.
7.
Which of the following job offers is most likely a work-at-home scam?
Processing rebates for two hours a day for $500. Pay that is far above market rates is a classic sign of a scam.
8.
Scammers who target the elderly usually come across as _______.
Likable. Scammers who target the elderly put on a positive face. Many elderly find it hard to turn down someone in need.