Question

A recent New York Times article about Bernard Madoff and his illegal Ponzi scheme stated, "When money goes global, fraud does too." Although the goal of investors who trusted Madoff's investment company was to earn the highest return possible on their investments, they turned a blind-eye toward the fact that some of those returns were too good to be true. Individual investors, companies, and even charities lost large sums of money by investing with Madoff's company. Which of the following statements relates to this story?

A. The unethical behavior of one company had a worldwide ripple effect that can impact the well being of an economy.
B. Too much regulation caused the capitalistic nature of Mr. Madoff's business model to fail.
C. People lost money because of the fluctuations in world trading currencies, questioning the legitimacy of trading abroad.
D. Investors did not sign contracts with Mr. Madoff's company. The government can only protect individuals and companies who sign enforceable contracts.

Answer 1

The answer is A) The unethical behavior of one company had a worldwide ripple effect that can impact the well being of an economy.

Step-by-step explanation:

Bernard (Bernie) Madoff was a very respectable business man, market guru, top investor on Wall Street, president of Nasdaq, etc. With such a resume it was easy for him to attract billions of dollars from around the world into his Ponzi scheme fraud. He committed the largest fraud in history, over 64,800 millions of US dollars.

He would offer well above average returns to investors and greed made his clients fall into his trap. This whole fraud was so big it affected many people around the world.