A Clearinghouse Scam

question 45

Multiple Choice

A clearinghouse scam:

• A)involves a victim receiving a letter that claims he or she has inherited a significant amount of money.
• B)involves a victim receiving a mail from a known party who claims to have access to large sums of money or assets.
• C)involves a victim receiving a letter that falsely claims the writer represents a foreign bank.
• D)involves a victim receiving an email containing the Social Security number and/or credit information.

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Definitions:

Sequential

Pertaining to or following a logical order or a sequence.

Escalation Of Commitment

A pattern where individuals continue to invest in a decision despite evidence of its ineffectiveness or mistakes.

Dollar Cost Averaging

An investment strategy where a fixed dollar amount of a particular investment is purchased on a regular schedule, regardless of the investment's price.

Framing Error

A cognitive bias where information is presented or perceived in a way that influences decision-making or judgment.