What Do Pyramid and Ponzi Schemes Have in Common

question 34

Multiple Choice

What do pyramid and Ponzi schemes have in common?

• A) Investors must recruit other people to participate in order to make money.
• B) People who organize the schemes rarely communicate with investors.
• C) Investors receive information on investment strategies which builds trust in the schemes.
• D) Payments made to investors come from new participants in the schemes.

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Definitions:

Organic Product

The outcome of an organic reaction, often a complex molecule synthesized from simpler organic compounds.

Multistep Synthesis

The process of chemically creating a complex molecule through a series of individual chemical reactions, each step building upon the previous to construct the desired compound.

Organic Product

A compound or material derived from living organisms or synthesized to mimic structures found in natural substances.

Ether Solvents

A class of organic compounds with an oxygen atom connected to two alkyl or aryl groups, used as solvents due to their low reactivity and good dissolving properties.