Ba 3303 exam 1 - Study guides, Class notes & Summaries

A Ponzi scheme is a fraudulent investment scheme where the operator, an individual or organization, pays returns to its investors from new capital paid to the operators by new investors, rather than from profit earned through legitimate sources. What is a red flag of a Ponzi scheme? - ANSWER-Overly consistent investment returns in all market cycles. An economy's _____________________ is the interaction of policy makers, a monetary system, financial institutions, and financial markets to expe...