Chapter 8 and 9 Study Guide

What is the most secure password for internet or other uses?

A random series of numbers and letters.

Electronics Inc. advertises a specific price on a 46 inch LCD. They really don't have this TV in their store but instead they have a much more expensive TV double the advertised price they want to sell you. This practice is called _______.

Bait and switch

What should you do if someone comes to your door offering you a great opportunity to invest in a new company?

Decline

If you can't make a payment when the bill arrives, just wait until next month. T/F

False

Keeping your social security card in your billfold is a good way to protect yourself from identity theft. T/F

False

Based on the Pew Research, about 1/4 of those who use the internet have made an online purchase. T/F

False; 2/3

Http/https-which one is secure?

Https

Using a persons name or personal information w/out permission to make purchases or get loans is called _______.

Identity theft

Which has more selection; local store/online?

Online

Explain Ponzi Scheme.

Promises investors abnormally high profits from the money they "invest" in the plan. The system is doomed to collapse because there are little or underlying earnings from the money they received by the promoter.

Define fraud.

Someone who knowingly deceives you for their own personal gain.

Define "Dumpster Diving".

Someone who rummages through your trash looking for bills or other papers w/ your personal information on it.

A benefit of a credit card is the fact that it is safer to carry a credit card than cash. T/F

True

A benefit of buying online can be relying on the description of the product given. T/F

True

A credit card differs from either a charge card or a debit card because it allows you to make monthly payments on your balance. T/F

True

After completing an online purchase, be sure to print off a copy of your receipt. T/F

True

Before getting a credit card, it is important to read the fine print to understand the terms. T/F

True

Credit card companies can charge interest rates on their cards only if you are notified in advance. T/F

True

Credit cards are classified as revolving credit, which means you can use the amount for which you are approved. T/F

True

Deleting all e-mails asking for personal information w/out responding to them is a good way to reduce your potential if being a victim of consumer fraud. T/F

True

Entering your personal information on a website so you can get more information before deciding on an investment is not a good way to protect yourself from being a fraud victim. T/F

True

If you get a credit card w/ a special introductory low interest rate, you should read the agreement carefully to see what happens when the offer expires. T/F

True

If you think you're a victim of fraud, you should contact the Fraud Division of the three federal bureaus to request a fraud alert on your files. T/F

True

It is important to check out the merchants security policy before ordering online. T/F

True

Long firm fraud is setting up a false company only to ask people to buy stock in it. T/F

True

Recent changes in legislation now allow you to get a copy of your credit report free of charge once a year to check its accuracy. T/F

True

The minimum payment on your statement indicates the least amount you can pay w/out additional fees. T/F

True

When becoming a victim of identity theft, you should call the police immediately and report what happened. T/F

True

When buying a product online, use a credit card or charge card for increased protection. T/F

True

Whether buying online or buying from a local merchant, always buy from a reputable company. T/F

True

You can save time and money in comparison shopping online and locally before making a purchase. T/F

True

What is a con artist?

Very convincing and persuasive, bombarding you w/ all kinds of excuses, explanations, and promises that seem to zap your reasoning abilities.