Q. Consider the following statements with respect to “Ponzi scheme”:
1.Under the scheme, organizers often promise to invest money and generate high returns with little or no risk. 
2.Under the scheme, older investors get profits from the money earned from their investments.
3.In India, Ponzi schemes are banned under the Banning of Unregulated Deposit Schemes Act, 2019..
Which of the statements given above are correct?

[A] 1 and 2 only

[B] 2 and 3 only

[C] 1 and 3 only

[D] d)1, 2 and 3

Answer: C
Notes:

Explanation –

Statement 1 and 3 are correct. Under the Ponzi scheme, organizers often promise to invest your money and generate high returns with little or no risk. In India, Ponzi schemes are banned under the Banning of Unregulated Deposit Schemes Act, 2019.

Statement 2 is incorrect. Under the scheme, older investors get payouts from the investments of new investors, rather than profits earned.

Source: ForumIAS