The biggest Ponzi scam in history was carried out by American banker Bernard Lawrence "Bernie" Madoff, who defrauded thousands of investors out of tens of billions of dollars over the course of around 17 years.
Madoff recruited investors by promising to provide significant, consistent profits using a legal trading approach known as split-strike conversion. However, Madoff put client money into a single bank account, which he then used to pay returning customers.
When the market drastically declined in late 2008, he was unable to continue the deception. He paid redemptions by luring new investors and their funds.
In the scam Madoff just put their money of the investors in a Chase Manhattan Bank account, which was later combined to form JPMorgan Chase & Co. in 2000.
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Answer:
Controlling the rate of inflation.
Explanation:
Fiscal policy basically mean that the government will make some adjustment to their spending and tax rates depending on the current economic situation.
Inflation tend to cause the average price of consumer product become more expensive. The government can influence the rate of inflation through their fiscal policy.
When the government increase the amount of tax, it will reduce the amount of money circulated in the market and lower the rate of inflation. As a result, the price of consumers product will become more affordable for the people.
