Catalina Promises High Returns to Darby and Other Investors,who Then

question 13

Multiple Choice

Catalina promises high returns to Darby and other investors,who then agree to trust their funds to Catalina.She uses these funds to pay previous investors.This is

• A)a Ponzi scheme.
• B)a stock option.
• C)an accredited investor.
• D)a tombstone ad.

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Definitions:

Self-fulfilling Prophecy

A belief or expectation that an individual holds about a future event that manifests because the individual holds it.

Selective Perception

The process by which individuals selectively interpret what they see or hear on the basis of their interests, background, experience, and attitudes.

Response Characteristic

The specific manner in which an individual responds to stimuli or events, often influenced by personal traits or psychological states.

Unifying Trait

A characteristic or attribute that is considered central to the identity or behavior of an individual, bringing coherence to various aspects of themselves.