Reasoning - Logical Reasoning:

Logical Reasoning

MCQ - 134-8086

Originating in the 1920s, the Pyramid scheme is one of the oldest con games going. Honest people are often pulled in, thinking the scheme is a legitimate investment enterprise. The first customer to “fall for” the Pyramid scheme will actually make big money and will therefore persuade friends and relatives to join also. The chain then continues with the con artist who originated the scheme pocketing, rather than investing, the money. Finally, the pyramid collapses, but by that time, the scam artist will usually have moved out of town, leaving no forwarding address.

Question:

Originating in the 1920s, the Pyramid scheme is one of the oldest con games going. Honest people are often pulled in, thinking the scheme is a legitimate investment enterprise. The first customer to “fall for” the Pyramid scheme will actually make big money and will, therefore, persuade friends and relatives to join also. The chain then continues with the con artist who originated the scheme pocketing, rather than investing, the money. Finally, the pyramid collapses, but by that time, the scam artist will usually have moved out of town, leaving no forwarding address.

This paragraph best supports the statement that

it is fairly easy to spot a Pyramid scheme in the making.
the first customer of a Pyramid scheme is the most gullible.
the people who set up Pyramid schemes are able to fool honest people.
the first customer of a Pyramid scheme is the most gullible.
the Pyramid scheme got its name from its structure.

Correct Answer: C

Explanation:

The fact that the Pyramid scheme is set up by a con artist suggests that the honest people who invest have been fooled. Choices a and b are contradicted in the passage. The paragraph says that the Pyramid scheme originated in the 1920s, but does not say it had its heyday then; thus, choice d is incorrect. Choice e is a fact, but it is not mentioned in the passage.

Previous Question

Next Question

Back to Section

Record Performance

243 MCQ for effective preparation of the test of Logical Reasoning of Logical Reasoning section.

Read the MCQ statement: Originating in the 1920s, the Pyramid scheme is one of the oldest con games going. Honest people are often pulled in, thinking the scheme is a legitim .... ent that , keenly and apply the method you have learn through the video lessons for Logical Reasoning to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 134-8086.

How to Answer

Solve the question for MCQ No. and decide which option (A through D/E) is the best choice to answer the MCQ, then click/tap the blue button to view the correct answer and it explanation.

Share This Page

Full Films

TV Serials

Short Films

Upcoming Films