A Ponzi Scheme

question 18

Multiple Choice

A Ponzi scheme

• A)is guaranteed a minimum income.
• B)pays "returns" to savers out of capital paid in from new investments or new investors.
• C)is guaranteed to fail eventually.
• D)b and c.

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Definitions:

Possessory Lien

A legal right allowing an individual to retain possession of property until a debt owed by the property owner is paid.

Artisan

A skilled craft worker who makes or creates things by hand that may be functional or strictly decorative.

Compensated Surety

A surety who receives compensation for guaranteeing the performance or obligations of another.

Contract Change

Modifications or amendments to the terms and conditions of a contract, typically agreed upon by all involved parties.