FL2: Revision 2

Identity theft means someone uses your personal details without permission.

• True

• False

Answer explanation

True.

Identity theft occurs when someone uses your personal details, such as your name or social security number, without your permission, often for fraudulent purposes.

You should always give your PIN number to websites that ask.

• True

• False

Answer explanation

It is false to give your PIN to websites. Legitimate sites will never ask for your PIN, as sharing it can lead to identity theft and fraud. Always keep your PIN confidential.

Comparing prices before buying can help save money.

• True

• False

Answer explanation

True.

Comparing prices allows consumers to find the best deals, leading to potential savings on purchases.

Investing early can help your money grow more over time.

• True

• False

Answer explanation

True.

Investing early allows your money to benefit from compound interest, leading to greater growth over time compared to investing later.

A pyramid scheme is a safe way to invest.

• True

• False

Answer explanation

A pyramid scheme is not a safe way to invest because it relies on recruiting new members to pay returns to earlier investors, leading to inevitable losses for most participants. Thus, the statement is false.

Stocks are guaranteed to make you money.

• True

• False

Answer explanation

Stocks are not guaranteed to make money; they can fluctuate in value and may result in losses. Therefore, the statement is false.

It is smart to have only one type of investment.

• True

• False

Answer explanation

Having only one type of investment is risky because it lacks diversification. Diversifying investments can help mitigate risks and improve potential returns, making the statement false.

Social media can trick people into buying unnecessary things.

• True

• False

Answer explanation

True.

Social media often uses targeted advertising and influencers to create a sense of urgency or desire, leading people to purchase items they may not need.

Ads never try to trick you—they only give facts.

• True

• False

Answer explanation

The statement is false because ads often use persuasive techniques and may present information selectively to influence consumers, rather than just providing straightforward facts.

Scammers sometimes pretend to be someone you trust.

• True

• False

Answer explanation

True.

Scammers often impersonate trusted individuals or organizations to deceive victims, making it crucial to verify identities before sharing personal information.