Money Basics

Test your scam-spotting abilities. Which one of these items represents a legitimate investment opportunity, and which is likely a scam?

1. Get involved in a ground-floor opportunity, and get more return on your investment than you've ever had before. Guaranteed profits in just 30 days. No risk involved. Act now! The market is on the move!
   
   
2. U.S. savings bonds are backed by the full faith and credit of the United States. You can buy bonds from most banks or financial institutions. Your investment will grow for 30 years, but bonds can be cashed after six months. Interest earned on bonds is exempt from state and local income tax.

If you think Item 1 is a scam, you're right. Notice that some claims send warning signs like "more return on your investment than you've ever had before", "Guaranteed profits in just 30 days", and "No risk involved".

Remember that every investment involves risk and if it sounds too good to be true, it probably is. If it's a legitimate investment, you shouldn't have to rush into "acting now". Item 2, on U.S. savings bonds, offers a legitimate investment opportunity.