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:

Customs Clearance

The process of obtaining permission to import or export goods from one country to another, including the payment of duties and taxes.

Supplier's Country

The nation in which a supplier or producer of goods or services is located or operates from.

Port

A location on a coast or shore containing harbors where ships can dock and transfer people or cargo to or from land.

CIF

An international commercial term (Incoterm) meaning "Cost, Insurance, and Freight," indicating the seller must cover these costs to the point of destination specified.