Financial Services and Responsible Borrowing

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Questions and Answers

What is one common tactic used by fraudsters in investment scams?

Offering guaranteed high returns without risk (correct)

Using testimonials from satisfied investors

Providing detailed portfolios of past performances

Requiring large upfront fees to invest

How do fraudsters typically build trust with potential victims?

Demonstrating successful past investments directly to victims

Sending regular updates about market changes

Offering free financial advisory services

Allowing initial small returns to entice further investment (correct)

What is a common excuse used by fraudsters to solicit more money from victims?

They need to cover taxes on previous investments

The investment scheme needs additional funding to grow

They lost access to trading platforms temporarily

Market fluctuations require urgent cash injections (correct)

What happened in the year 2022 regarding online investment fraud?

The losses exceeded HK$900 million Signup and view all the answers

What typically happens after victims invest money in fraudulent schemes?

Fraudulent platforms eventually stop operating and disappear Signup and view all the answers

What does taking out a mortgage usually involve?

Borrowing money with home as collateral Signup and view all the answers

What happens if a borrower fails to make mortgage repayments?

Their home may be repossessed Signup and view all the answers

What is an overdraft?

Withdrawing more money than what is in the account Signup and view all the answers

What is a key consideration before borrowing money?

Ability to repay the loan Signup and view all the answers

What is the typical financial obligation when acquiring insurance?

Paying a sum of money called a premium Signup and view all the answers

What is a key consideration before applying for a government loan for university study?

The appropriateness of the borrowing amount Signup and view all the answers

Which service offered by financial institutions is primarily focused on safeguarding assets?

Insurance Signup and view all the answers

What is a potential consequence of not properly assessing the risk of late repayment on a loan?

Becoming heavily in debt Signup and view all the answers

Which financial habit is recommended to avoid excessive borrowing?

Saving and other means Signup and view all the answers

When considering a loan, which factor is essential for evaluating repayment capacity?

Current income levels Signup and view all the answers

In terms of financial services, what role do deposits serve for individuals?

To grow personal wealth Signup and view all the answers

What is one of the primary purposes of financial institutions?

To manage money wisely Signup and view all the answers

Which service could directly assist someone looking to borrow money?

Loan services Signup and view all the answers

What is one serious consequence of personal data theft mentioned?

Substantial financial loss Signup and view all the answers

How can consumers contribute to addressing cybersecurity issues?

Learning more about cybersecurity Signup and view all the answers

Which government office's websites can individuals visit to strengthen their cybersecurity awareness?

Office of the Chief Information Officer Signup and view all the answers

What is a primary benefit of cybersecurity as mentioned in the content?

Protection against cyber attacks and crimes Signup and view all the answers

What is considered a hindrance to technological innovation according to the content?

Lack of respect for intellectual property Signup and view all the answers

What is one way individuals can proactively enhance their cybersecurity knowledge?

Watching educational videos on cybersecurity Signup and view all the answers

What is a significant impact of cyber crimes as highlighted in the content?

They result in personal data theft. Signup and view all the answers

What overarching concept does cybersecurity help to safeguard?

National security Signup and view all the answers

Which of the following is NOT a suggested coping strategy for online shopping?

Buy from any available platform Signup and view all the answers

What is a major issue related to intellectual property in online shopping?

Counterfeit goods Signup and view all the answers

Why is understanding cybersecurity important for consumers?

It enhances network security Signup and view all the answers

Which of the following factors is part of the 5R framework in green consumption?

Recycle Signup and view all the answers

What is green consumption primarily concerned with?

Balancing economic, social, and environmental needs Signup and view all the answers

What type of goods are commonly associated with intellectual property violations in online shopping?

Infringing works Signup and view all the answers

What is the purpose of practicing green consumption?

To lower environmental impact Signup and view all the answers

What can consumers do to avoid legal issues while shopping online?

Gain a better understanding of cybersecurity Signup and view all the answers

Study Notes

Financial Services Provided by Financial Institutions

Financial institutions offer a range of services to help individuals and businesses manage their money.
Deposits: Saving money in a bank account.
Insurance: Protection against loss or damage, including property insurance, life insurance, and health insurance.
Loans: Borrowing money for various purposes, including personal, business, mortgage, and auto loans.
Mortgages: Borrowing money to purchase a home, using the home as collateral.
Overdraft: A short-term loan where individuals can withdraw more money than is in their account.

Financial Responsibility and Borrowing

Before borrowing money, individuals should consider their ability to repay the loan and the associated risks.
Responsible borrowing: Ensure the loan amount is appropriate, sufficient repayment capacity exists, and the risk of late repayment is understood.
Borrowing Considerations: If the loan is not absolutely necessary, it's best to avoid it. If repayment is a concern, do not borrow.

Insurance Services

Insurance companies offer various products that protect individuals against loss or damage.
Policyholder: The person who pays premiums to the insurance company.
Premium: The amount of money paid to the insurance company for coverage.
Coverage: The protection provided by the insurance policy, which can include property, life, and health insurance.

Online Investment Fraud Tactics

Approaching the Victim: Fraudsters often contact victims through dating apps or social media, claiming expertise and offering high-return, low-risk investment opportunities.
Gaining the Victim's Trust: Fraudsters allow initial returns to encourage further investment.
After Deceiving the Victim: Fraudsters request additional investment before allowing access to original investments. Eventually, the fraudulent platform stops operating, and the perpetrators disappear.
Online Investment Fraud Impact: In 2022, there were 1,884 cases of online investment fraud, resulting in over HK900millioninlosses,averagingHK900 million in losses, averaging HK900millioninlosses,averagingHK500,000 per victim.

Cybersecurity and Consumer Protection

Cybersecurity: Protecting individuals, organizations, and governments from cyberattacks and cybercrimes.
Cybersecurity Awareness: Individuals can enhance their cybersecurity awareness through resources like the Hong Kong Government's "Cyber Security Information Portal" and "InfoSec."
Online Shopping Precautions: Utilize credible online shopping platforms, secure payment methods, protect personal data, and pay attention to return policies.
Intellectual Property Rights: Protect against counterfeit goods and infringing works in online shopping.

Green Consumption and Sustainable Living

Green Consumption: Sustainable and responsible consumer practices promoting economic, social, and environmental balance.
5R Principles: Reducing, Reusing, Recycling, Re-evaluating, and Rescuing.
Green Consumption Decisions: Consider the environmental impact of purchases and prioritize sustainable options in clothing, food, living, and travel.

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Description

Explore the essential financial services offered by institutions, including deposits, loans, mortgages, and insurance. Understand the importance of financial responsibility and the considerations to take into account before borrowing money. This quiz will enhance your knowledge of managing personal finances effectively.