Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
Being paid to recruit others to a sales opportunity is sufficient to indicate that the opportunity is actually a pyramid scheme.
Choose wisely. There is only one correct answer.
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.
In the world of cryptocurrency, what is a private key?
Choose wisely. There is only one correct answer.
A string of secret numbers used to sign transactions. A private key provides access to your cryptocurrency.
3.
Which of the following descriptions of a work-at-home job is most likely to be that of a scam?
Choose wisely. There is only one correct answer.
An assurance that anyone can do it. Of the choices, this one is the most likely to be from a scam.
4.
Which of the following descriptions of an investment is a telephone scammer most likely to use?
Choose wisely. There is only one correct answer.
"Risk-free". Scammers often describe their investments as risk-free.
5.
If you are unsure whether a broker is licensed, you should contact _______.
Choose wisely. There is only one correct answer.
Your state securities regulator. Brokers are registered at the state level.
6.
Why are so many frauds tailored to the elderly?
Choose wisely. There is only one correct answer.
All of the above. Though these do not describe all elderly, they describe enough that criminals target them.
7.
Why might a scammer go to great lengths to detail the intricate aspects of an "opportunity"?
Choose wisely. There is only one correct answer.
Detail makes the opportunity look legitimate. The more detail, the more real it seems.
8.
Why are older people common targets for romance scammers?
Choose wisely. There is only one correct answer.
They usually have more assets than younger people. Older people can be prime targets because of their assets.