Hannah,a Blogger,has a Popular Website Called Hannah's Healthy Home

question 11

Multiple Choice

Hannah,a blogger,has a popular website called Hannah's Healthy Home.Hannah earns money from companies by reviewing and endorsing their cleaning products.Which of the following does the FTC require Hannah to do?

• A)provide links to the cleaning product websites
• B)disclose her credentials as a product spokesperson
• C)disclose that she is paid for product endorsements
• D)post accurate information about her product reviews

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Definitions:

Market Value

The ongoing price for buying or selling a service or asset on the open market.

Equilibrium

Equilibrium refers to a state in which market supply and demand balance each other, and as a result, prices become stable.

Call Option

A financial contract that gives the holder the right, but not the obligation, to buy a stock, bond, commodity, or other asset at a specific price within a specified time frame.

Strike Price

The specified price at which the holder of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying asset.