Which is an example of fraud?A.Applying for a car loanB.Purchasing brand-new stocksC.Forging a checkD.Filing a home insurance claim
Question
Which is an example of fraud?
A. Applying for a car loan
B. Purchasing brand-new stocks
C. Forging a check
D. Filing a home insurance claim
Solution
Fraud is typically defined as wrongful or criminal deception intended to result in financial or personal gain. Among the options provided:
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Applying for a car loan: This involves filling out a loan application to finance a vehicle, which is a standard practice and does not inherently involve deceit.
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Purchasing brand-new stocks: Buying stocks in the market is an investment activity and does not involve deception.
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Forging a check: This is the act of illegally altering or replicating a check to withdraw money that one is not entitled to. This is a clear example of fraud.
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Filing a home insurance claim: While filing a claim itself is legitimate, if any false information is included or the claim is exaggerated, it could constitute fraud.
Final Answer
C. Forging a check is a clear example of fraud.
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