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Financial Lit: End of Unit Fraud and Social Services

Total questions: 40

Worksheet time: 22mins

Name
Class
Date
1.

Welfare is best defined as:

a)

Government aid to those in need

b)

A type of insurance policy

c)

A form of entertainment

d)

A method of transportation

2.

The poverty line is defined as:

a)

The minimum level of income deemed adequate in a particular country.

b)

The average income of all citizens in a country.

c)

The maximum amount of money a person can earn before paying taxes.

d)

A line drawn on a map to separate rich and poor neighborhoods.

3.

Temporary Assistance for Needy Families (TANF) is defined as:

a)

A federal program that provides financial assistance to low-income families with children.

b)

A government health insurance program for the elderly.

c)

A student loan program for higher education.

d)

A retirement savings plan for employees.

4.

Food stamps are defined as:

a)

A government-issued benefit to help low-income individuals buy food.

b)

A type of postage stamp used for mailing food packages.

c)

A coupon for discounts at restaurants.

d)

A reward program for frequent grocery shoppers.

5.

Supplemental Security Income (SSI) is defined as:

a)

A federal program that provides monthly payments to people with low income and limited resources who are aged, blind, or disabled.

b)

A retirement savings plan for employees in the private sector.

c)

A type of health insurance for children under 18.

d)

A government loan program for small businesses.

6.

Public housing is defined as:

a)

Government-owned housing provided at low cost to people with low incomes.

b)

Privately owned luxury apartments for wealthy individuals.

c)

Temporary shelters for tourists and travelers.

d)

Housing built exclusively for military personnel.

7.

Fill in the blank: ________ are deceptive practices intended to gain an unfair or unlawful financial advantage.

a)

Fraud

b)

Charity

c)

Investment

d)

Donation

8.

Fill in the blank: ________ are schemes designed to trick individuals into giving away personal information or money.

a)

Scams

b)

Passwords

c)

Browsers

d)

Networks

9.

Fill in the blank: ________ are illegal acts involving money, such as embezzlement, forgery, and identity theft.

a)

Financial Crimes

b)

Traffic Violations

c)

Environmental Hazards

d)

Medical Procedures

10.

Fill in the blank: ________ are deceptive practices in the investment industry, often involving false promises of high returns.

a)

Investment Fraud

b)

Stock Analysis

c)

Financial Planning

d)

Market Research

11.

Fill in the blank: ________ are deceptive practices involving financial institutions, such as check fraud, credit card fraud, or account takeovers.

a)

Bank Fraud

b)

Money Laundering

c)

Identity Theft

d)

Insider Trading

12.

Fill in the blank: ________ is a fraudulent business model that relies on recruiting new members to pay existing members.

a)

Pyramid Schemes

b)

Ponzi Bonds

c)

Stock Options

d)

Credit Unions

13.

Fill in the blank: ________ are scams that promise unrealistic returns on investments, often with high-pressure sales tactics.

a)

Investment Scams

b)

Charity Donations

c)

Online Shopping Deals

d)

Job Offers

14.

Fill in the blank: ________ involves forging or altering checks.

a)

Check Fraud

b)

Identity Theft

c)

Money Laundering

d)

Embezzlement

15.

Fill in the blank: ________ is the unauthorized use of credit or debit cards.

a)

Credit Card Fraud

b)

Identity Theft

c)

Phishing

d)

Money Laundering

16.

Which type of scam involves gaining trust of a potential date and then asking for money or crypto?

a)

Dating Apps

b)

Investment Fraud

c)

Account Takeover

d)

Insider Trading

17.

Which of the following is a red flag for investment fraud?

a)

Too good to be true offers

b)

Low returns with high risk

c)

Transparent fees

d)

Accredited advisors

18.

Scammers often use high-pressure sales tactics to get you to invest before you have time to think. What is this red flag called?

a)

Pressure to invest quickly

b)

Guaranteed returns

c)

Low-risk investment

d)

Insider information

19.

Never give out your personal information, like your social security number or bank account details, to unsolicited callers or emails. This is an example of:

a)

Requests for personal information

b)

Lack of transparency

c)

Unsolicited offers

d)

Pressure to invest quickly

20.

Avoid investments that require you to pay with gift cards, wire transfers, or cryptocurrency. This is a red flag known as:

a)

Requests for unusual payment methods

b)

Guaranteed returns

c)

Insider trading

d)

Accredited investor requirement

21.

Double-check the legitimacy of websites, phone numbers, and investment opportunities. This is called:

a)

Verify information

b)

Ignore information

c)

Share information

d)

Delete information

22.

Destroy documents with bank statements, credit card information, and other sensitive data to protect yourself from fraud.

a)

True

b)

False

23.

Don't respond to unsolicited emails, calls, or text messages. This is an example of:

a)

Be wary of unsolicited offers

b)

Pressure to invest quickly

c)

Lack of transparency

d)

Requests for unusual payment methods

24.

Which of the following is defined as unauthorized access to a bank account?

a)

Account Takeover

b)

Money Laundering

c)

Insider Trading

d)

Debt Collection Fraud

25.

Fill in the blank: ________ is a fraudulent investment scheme where returns are paid to earlier investors with money taken from later investors.

a)

Ponzi Schemes

b)

Mutual Funds

c)

Index Funds

d)

Savings Accounts

26.

Fill in the blank: ________ is a fraudulent business model that relies on recruiting new members to pay existing members.

a)

Pyramid Schemes

b)

Ponzi Bonds

c)

Stock Options

d)

Credit Unions

27.

Fill in the blank: ________ are scams that promise unrealistic returns on investments, often with high-pressure sales tactics.

a)

Investment Scams

b)

Charity Donations

c)

Online Shopping Deals

d)

Job Offers

28.

Don't overshare personal information online or over the phone. This is an example of:

a)

Be cautious with your information

b)

Verify information

c)

Use strong passwords

d)

Shred documents with personal information

29.

Fill in the blank: ______ is the act of using a car for a set period of time by making regular payments, without owning the car at the end of the term.

a)

Leasing

b)

Financing

c)

Renting

d)

Purchasing

30.

Interest may be charged but can be avoided by paying the entire balance each month.

a)

Debit Card

b)

Credit Card

c)

Both

31.
It is wise to compare credit card offers before choosing one
a)
True
b)
False
32.
The cost of borrowing money is referred to as 
a)
Interest 
b)
Annual Percentage Rate 
c)
Credit 
d)
Credit Line 
33.
Paying the minimum payment on a credit card every month will:
a)
Pay a large percentage of the total balance owed every month
b)
Make the final amount paid substantially higher than the amount initially charged to the card
c)
help the cardholder create a plan for paying of a credit card in a decent amount of time
d)
allow the cardholder to avoid paying any interest charges 
34.
When are consumers like you more likely to spend more money?
a)
When paying with cash
b)
When paying with a debit card
c)
When paying with a credit card
d)
When paying with a check
35.

A Consolidation Loan is a loan that combines multiple debts into one payment.

a)

It is a loan that combines multiple debts into one payment.

b)

It is a loan that consolidates real estate properties.

c)

It is a loan designed to merge business accounts.

d)

It is a loan that is only used for credit card debts.

36.

Who is a Cosigner? A cosigner is a person who signs with a borrower to guarantee the loan repayment.

a)

A person who signs with a borrower to guarantee the loan repayment

b)

A person who borrows money

c)

A person who assists in loan documentation

d)

A person who finances the loan

37.

The possibility of losing all or part of your investment is known as

a)

asset allocation

b)

compounding

c)

return

d)

risk

38.
Spreading your investments around to inrease financial security
a)
Risk assessment
b)
Diversification
c)
Stocks, bonds & cash
d)
Liquidity trap
39.

When is it best to start saving for retirement?

a)

after your home is paid off

b)

after you get a promotion

c)

after you get your dream job

d)

ASAP

40.

Why is diversification a recommended investment strategy?

a)

Investing in a diversified portfolio guarantees that you won’t lose money with your investments

b)

If you tell your fund manager to use diversification, they’ll charge you lower fees

c)

Diversifying your portfolio helps reduce risk

d)

If you diversify your portfolio, you will definitely earn a high return