Scams & Fraud
This scam pays original investors with the money from new investors
What is a Ponzi scheme?
These investments represent ownership in a company
What are stocks?
This occurs when a person cannot pay their outstanding debts
What is insolvency?
The central bank of the United States
What is the Federal Reserve?
This type of credit lets you borrow repeatedly up to a limit- like a credit card.
What is revolving credit?
How do you protect yourself from being scammed and identity fraud
What is shredding documents, changing passwords, use secure networks, and monitor credit reports?
With this investment, you may earn rental income or see property value increase
What is real estate?
Two debts that cannot be discharged in bankruptcy
What are alimony and child support?
Expansionary fiscal policy includes decreasing taxes and increasing this.
What is government spending?
This type of credit is repaid in set monthly payments, such as car loans
What is installment credit?
In this scam, scammers buy a stock, hype it up, and sell it once the price rises.
What is a pump-and-dump scam?
This type of retirement account should be opened as early as possible to take advantage of compound growth
What is a Roth IRA?
This type of bankruptcy involves selling assets to pay creditors
What is Chapter 7 (liquidation) bankruptcy?
The amount banks must keep in reserve is known as this
What is the reserve requirement?
Student loans and personal loans are examples of this type of paid debt, which has no collateral
What is unsecured debt?
This occurs when someone steals your personal information and uses it at their own
What is identity theft?
These are the four kinds of investment accounts you can set up
What are standard, retirement, custodial, and educational accounts?
This type of bankruptcy restructures debt so it can be repaid over time
What is Chapter 13 (reorganization) bankruptcy?
When the Federal Reserve buys bonds, this type of policy is being used
What is expansionary monetary policy?
Mortgage loans are an example of this type of debt, backed by collateral
What is secured debt?
Fake emails or messages trying to steal information by pretending to be trustworthy sources
What is phishing?
Businesses that gives you the ability to purchase and sell investments
What is Brokerage?
When a person dies, remaining debts are paid using this
What is their estate?
The type of unemployment cause by economic downturns
What is cyclical unemployment?
These lenders should be avoided due to extremely high interest rates and predatory terms
What are payday lenders?