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.

Question

Quizplus · Accepted Answer

Collecting money and investing it in government bonds is not a characteristic of a Ponzi scheme. The other options are typical elements of a Ponzi scheme, which relies on gaining the trust of investors, promising high returns that cannot be sustained, and using new investors' money to pay off earlier investors.

Which of the Following Is NOT an Element of a Ponzi