Which of the Following Statements Is True About Credit-Card Fraud

question 17

Multiple Choice

Which of the following statements is true about credit-card fraud?

• A) Because of high-tech security, credit-card fraud online occurs less frequently than through mail-order catalogs.
• B) Traditional storefront retailers have the worst problems with credit card fraud because most allow you to swipe the credit card yourself.
• C) Credit-card fraud is not a major issue for consumers who shop online.
• D) Credit-card fraud is a major issue for businesses and consumers.
• E) Credit-card fraud is 100 percent preventable through increased security measures, but companies have not used resources to prevent this type of fraud.

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Definitions:

Security Categories

Security categories classify financial instruments based on their characteristics, such as equities, debts, derivatives, or hybrid instruments.

Carrying Value

The net amount at which an asset or liability is valued on the balance sheet, taking into account factors such as depreciation, amortization, and impairment.

Fair Value

An estimate of the market value of an asset or liability, based on the price at which participants would willingly transact in an orderly transaction.

Trading Securities

Financial instruments that are purchased with the intention of selling them in the short term to profit from price fluctuations.