10
QuizMultiple Choice

Consumer Protection and Financial Fraud — Quiz

Question 10 • Personal Finance

What is a Ponzi scheme?

Answer
A
Paying old investors with new money
B
Government program
C
Bank account
D
Investment growth

Explanation

A Ponzi scheme pays returns to earlier investors using money collected from newer investors, rather than profits from a legitimate investment. Therefore, the correct choice is paying old investors with new money.

AI-written and checked against the verified answer.