WBCS.LIVE practice question

An investment plan in which the Company pays return to investors from new capital coming in from new investors instead of profits of the business is known as:

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Underwriting
  2. Ponzi scheme
  3. Mutual fund
  4. Para Banking

Correct answer and explanation

Correct answer: Ponzi scheme