Which of the Following Is an Example of Ponzi Schemes

question 79

Multiple Choice

Which of the following is an example of ponzi schemes?

• A) Ursula pays an advance of $500 to Stan Electronics for a microwave oven, which is not delivered to her as promised.
• B) Harry assumes his father, Tom's, identity, when swiping Tom's credit card for purchases and signing the receipts.
• C) Jenny receives a call from a person selling mobile phones, and purchases a phone by giving her financial information to the unknown caller.
• D) Heidi receives an e-mail which offers her an opportunity to share a percentage of millions of dollars.
• E) James invests his funds with Tim, who gives James 'high returns', but flees with the remainder money after attracting new investors.

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Definitions:

Midpoint Method

A technique used to calculate the percentage change between two values, avoiding the problem of path dependency by using the average of the initial and final values as the base.

Normal Goods

Goods for which demand increases as the income of individuals increases.

Income Elasticity of Demand

A gauge for the sensitivity of demand for an item to shifts in the income levels of buyers.

Sapphire Pendant Necklaces

Jewelry items consisting of pendants made from the gemstone sapphire, typically hung on a chain or necklace.