Only The Most Financially Savvy Can Pass This Monetary Terms Quiz

Karyn Bailey|General Knowledge|13 Jan 2020

What is FALSE about a Ponzi scheme?

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A woman holds up cash while wearing an enthused expression.
Retry Correct Incorrect A Ponzi scheme is an illegal scam whereby a company uses new investor funds to pay back earlier investors, hiding the fact that the company is not actually providing business.
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H. Armstrong Roberts/ClassicStock/Getty Images
H. Armstrong Roberts/ClassicStock/Getty Images

What is FALSE about a Ponzi scheme?

  • It is named after the swindler Charles Ponzi
  • Older investors are the least likely to get returns
  • It relies on funds from new investors
  • It promises little risk and high return
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