Managing Risk — Test Answers

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1
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Which type of theft does this scenario represent?

A
financial identity theft
B
medical identity theft
C
employment identity theft
D
online identity theft
2
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Why should different accounts use different passwords?

A
To make login faster
B
To simplify password storage
C
To prevent multiple accounts from being compromised
D
To avoid using password managers
3

What proactive step should Jayden take to protect his personal identity after receiving an unexpected bill from a popular credit card company with which he does not have an account?

A
Jayden should forward the bill to all his contacts to raise awareness about potential credit card scams.
B
Jayden should contact the credit card company’s published number to inquire about the unrecognized charge.
C
Jayden should provide a valid credit card to a third-party service who advertises their success in resolving fraud.
D
Jayden should pay the bill immediately, assuming it's a valid charge and attempting to prevent any further issues.
4

What should insurance decisions be based on?

A
risk and personal needs
B
price only
C
location only
D
advertisements
5

Why does insurance reduce financial risk?

A
Guarantees income
B
Shares costs across a group
C
Eliminates all costs
D
Removes expenses
6

Which factors influence insurance needs? Select two.

A
Income
B
Hobbies
C
Dependents
D
Social media
8

A driver chooses a high deductible and low premium. What is the tradeoff?

A
no financial impact Correct answer: c
B
lower risk overall
C
higher monthly costs
D
more out-of-pocket cost during claims
9

Noah received a text from his streaming service that his account was on "HOLd.” The text instructed him to click the link and provide the required information to reactivate his account. How can Noah protect himself from identity theft?

A
Noah should click the link in the text and follow the instructions provided.
B
Noah should delete the text and indicate it as spam.
C
Noah should click the link in the text and follow up with a call to his service provider.
D
Noah notices the mixed characters of “HOLd” and should click the link to verify the issue.
10

What is Medicaid?

A
Employer plan
B
Low-income public program
C
Retirement plan
D
Private insurance
11

What does it mean to be overinsured?

A
Avoiding premiums
B
Paying for more coverage than needed
C
Having too little coverage
D
Having no insurance
12

Why do phishing messages often create urgency?

A
To increase security awareness
B
To prevent account access
C
To improve communication speed
D
To encourage quick decisions without verification
13

A person drives daily and has limited savings. What is the best insurance choice?

A
minimum coverage
B
high deductible only
C
high coverage and lower deductible
D
no insurance
14

Why should users review data use policies?

A
To increase profits
B
To avoid passwords
C
To understand how data is handled
D
To reduce login time
15

How does multi-factor authentication improve security?

A
It removes the need for passwords
B
It adds an additional verification step
C
It stores passwords automatically
D
It shortens login time
16

What happens with a lower premium?

A
no cost
B
higher financial risk
C
lower risk
D
full coverage
17

What is a user agreement?

A
A password system
B
Terms explaining data use
C
A banking feature
D
A security alert
18

Why is employer insurance often cheaper?

A
Free coverage
B
Unlimited coverage
C
Group pricing
D
No premiums
19

Why is being underinsured financially risky?

A
It lowers premiums
B
It leaves individuals responsible for large costs
C
It removes deductibles
D
It increases benefits
20

Lucas received a text from his payment app (P2P) indicating that he needed to reset his password. He clicked on the link and followed the directions. After providing updated personal information, he realized this was a scam. What are Lucas’s immediate next steps?

A
Lucas should click on any other links provided in the scam text message to gather more information about the scammer.
B
Lucas should report the scam to the payment app and contact the credit card company linked to the app to deactivate his account.
C
Lucas should delete the payment app from his device and avoid using any payment apps in the future to prevent similar scams.
D
Lucas should share his experience on social media platforms, warning others about the scam and seeking help to resolve the issue.

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