DMPQ: Give a brief account on following term. (Economy) a) Monetary policy transmission b) Ponzi scheme

Monetary transmission refers to the process by which a central bank’s monetary policy decisions are passed on, through financial markets, to businesses and households.

 

 

A Ponzi scheme is a fraudulent investing scam promising high rates of return with little risk to investors. Instances of people losing their hard-earned money to Ponzi schemes keep coming to light.

Companies that engage in a Ponzi scheme focus all of their energy into attracting new clients to make investments. Ponzi schemes  rely on a constant flow of new investments to continue to provide returns to older investors. When this flow runs out, the scheme falls apart. There is no actual effective revenue generation. The scheme is named after Charles

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