Understanding Financial Literacy

What is e-commerce?

• E-commerce is the buying and selling of goods and services over the internet.

• E-commerce is a type of social media platform.

• E-commerce is the process of trading stocks in the stock market.

• E-commerce refers to physical stores selling products.

Name one advantage of e-commerce.

• High shipping costs

• Limited payment methods

• Global reach

• Restricted product availability

What should consumers beware of when shopping online?

• Unlimited returns without conditions

• Guaranteed lowest prices

• Free shipping on all items

• Beware of scams, hidden fees, and security risks.

How can you protect your personal information in e-commerce?

• Only shop on websites with low prices

• Use strong passwords, enable two-factor authentication, shop on secure websites, avoid public Wi-Fi, and monitor bank statements.

• Use the same password for all accounts

• Share your passwords with friends

What role does information technology play in the insurance industry?

• Information technology increases manual paperwork in the insurance industry.

• Information technology has no impact on customer interactions in insurance.

• Information technology solely focuses on marketing strategies in the insurance sector.

• Information technology streamlines operations, improves customer service, and enhances data analysis in the insurance industry.

What is the purpose of an insurance ombudsman?

• To resolve disputes between policyholders and insurance companies.

• To regulate insurance premiums set by companies.

• To provide financial advice to policyholders.

• To sell insurance policies directly to consumers.

How can an insurance ombudsman assist consumers?

• An insurance ombudsman assists consumers by resolving disputes with insurance companies and ensuring fair treatment.

• Providing financial advice to consumers

• Selling insurance policies directly

• Conducting market research on insurance trends

What are commodity futures?

• Commodity futures are contracts to buy or sell a commodity at a future date for a specified price.

• Options to buy or sell commodities without any future obligation.

• Contracts that guarantee a fixed price for a commodity indefinitely.

• Agreements to purchase commodities only in the present.

What is one benefit of investing in commodity futures?

• Guaranteed profit on every trade.

• No risk of loss whatsoever.

• Immediate cash flow from investments.

• Hedging against price fluctuations.

What are the primary benefits of having insurance?

• The primary benefits of having insurance include financial protection, risk management, and peace of mind.

• Tax deductions for all expenses

• Guaranteed income for life

• Free healthcare services