The Attractiveness of a Ponzi Pyramid Scheme Consists Of

question 8

Multiple Choice

The attractiveness of a Ponzi pyramid scheme consists of:

• A)selling stocks with very high volatility to investors.
• B)convincing investors to invest in assets from which they will never receive a return.
• C)attracting investors by giving them a high return using new subscribers' money.
• D)convincing investors to invest and then declaring bankruptcy.

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Definitions:

Prejudice

A preconceived opinion or bias against someone or something, typically not based on reason or actual experience.

Self-Fulfilling Prophecy

A forecast that becomes a reality because of the mutual influence between how one thinks and acts, leading to its own fulfillment.

Postdecisional Dissonance

The psychological discomfort one feels after making a difficult decision, often leading to regret or rationalization of the choice.

Insufficient Justification Effect

A phenomenon where individuals modify their attitudes or beliefs to align with their actions, especially when those actions lack adequate external justification.