Basic Trivia Quiz On Fraud!

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| By Chris.nigrin

Chris.nigrin

Community Contributor

Quizzes Created: 1 | Total Attempts: 130

Questions: 8 | Attempts: 130 | Updated: Dec 8, 2023

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This Basic Trivia Quiz on Fraud tests your knowledge on handling and recognizing fraudulent activities in investments and telemarketing. It aims to enhance awareness and preventive measures, critical for anyone navigating financial decisions.

Questions and Answers

1.

You should be courteous to telemarketers and listen to their pitch.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
Be wary of pushy telemarketers who try to pressure you into making immediate decisions, ask for personal information like credit card numbers, Social Security numbers or bank account numbers. You don’t have to talk with telemarketers. Just hang up!

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2.

State insurance regulators can help you recover investment losses.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
Insurance and securities investments are not insured. You should determine what degree of risk you are willing to take, knowing that legitimate investments are not guaranteed against market loss. In cases of fraud, sometimes a state regulator can help with restitution of a portion of the losses.

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3.

Reporting cases of investment and insurance fraud won’t help get your money back.
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
Your investment losses are not insured, but reporting cases of fraud will help protect others against the same schemes. Don’t let embarrassment or fear stop you from alerting others.

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4.

You can reduce the number of telemarketing calls you receive.
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
Get on the National Do Not Call Registry at www.donotcall.gov or call 888-382-1222.

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5.

Websites and brochures are reliable indicators of legitimate investments.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
Unscrupulous salespeople often use professional-looking materials and websites to make their schemes look legitimate. Always double-check before you invest and verify the investment with a state regulator.

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6.

You should always check before you invest, even if a recommendation comes from someone you trust and have done business with for many years.
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
You should always assess your investment objectives and determine the risk involved
before making any investment decisions. And never allow the salesperson to manage your assets
as he or she sees fit without consulting you.

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7.

High rates of return often involve high risk.
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
Be wary of salespeople who offer low-risk investments with high rates of return. Never invest more than you can afford to lose.

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8.

State regulators can help you verify the legitimacy of an insurance or investment representative or company.
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
Take a pledge to stop, think and double-check before you invest.

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Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

Current Version
Dec 08, 2023

Quiz Edited by
ProProfs Editorial Team
Jun 04, 2015

Quiz Created by
Chris.nigrin

Basic Trivia Quiz On Fraud!

You should be courteous to telemarketers and listen to their pitch.

State insurance regulators can help you recover investment losses.

Reporting cases of investment and insurance fraud won’t help get your money back.

You can reduce the number of telemarketing calls you receive.

Websites and brochures are reliable indicators of legitimate investments.

You should always check before you invest, even if a recommendation comes from someone you trust and have done business with for many years.

High rates of return often involve high risk.

State regulators can help you verify the legitimacy of an insurance or investment representative or company.