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.
D) Investment principle is partially used to make payments to previous investors.

Question

Quizplus · Accepted Answer

In a Ponzi scheme, the collected money is usually not invested and is instead used to make payments to previous investors, or to fund the lifestyle of the scheme operator. The other elements listed (gaining others' confidence and promising abnormally high returns) are common characteristics of Ponzi schemes.

Which of the Following Is NOT an Element of a Ponzi