Which of the Following Is NOT an Element of a Ponzi

question 16

Multiple Choice

Which of the following is NOT an element of a Ponzi scheme?

• A)Gaining other's confidence.
• B)Promising abnormally high returns.
• C)Collected money is invested in government bonds.
• D)Investment principle is partially used to make payments to previous investors.

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Definitions:

Value Judgment

An assessment based on personal views, ethical standards, or aesthetics, rather than on measurable or objective criteria.

Deduction

An amount that is subtracted from someone's gross income, reducing the taxable income and thus the amount of tax owed.

Induction

A reasoning process that involves making generalizations based on specific observations or instances.

Microeconomics

The study of economic behavior and decision-making in small units, such as households and firms.