How Does a Ponzi Scheme Work

question 7

Multiple Choice

How does a Ponzi scheme work?

• A) It places the money in reserve as a part of the Federal Reserve System.
• B) It sets the money aside in a fund that cannot be touched except for Social Security payments.
• C) It pretends there are funds where there really are none.
• D) It uses the money to leverage loans from the World Bank.

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Definitions:

Small Intestine

A part of the gastrointestinal tract between the stomach and the large intestine, where most of the digestion and absorption of food nutrients takes place.

Kidney Tubules

Microscopic tubes in the kidneys where urine is formed through the processes of filtration, absorption, and secretion.

Organelle of Locomotion

Cellular structures that enable movement in organisms, such as cilia and flagella.

Flagellum

A long, whip-like appendage that enables many bacteria, sperm cells, and other organisms to swim and move.