Choose wisely. There is only one correct answer to each question.
0%
Keep studying!
Review your answers below to learn more.
1.
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.
2.
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.
3.
Why are so many frauds tailored to the elderly?
All of the above. Though these do not describe all elderly, they describe enough that criminals target them.
4.
When you send a cryptocurrency payment to another person, it is not reversible.
True. Crypto payments are not reversible; to get one back, the other person would have to send it to you, which is not likely to happen if the person had defrauded you.
5.
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.
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.
Why are older people common targets for romance scammers?
They usually have more assets than younger people. Older people can be prime targets because of their assets.
8.
Why might a scammer go to great lengths to detail the intricate aspects of an "opportunity"?
Detail makes the opportunity look legitimate. The more detail, the more real it seems.