Which option describes not one of the three types of loans often used in corrupt payments?

Which option describes not one of the three types of loans often used in corrupt payments?

• A. Outright payment described as innocent loan
• B. Legitimate loan guaranteed by a third party
• C. A grant of funds
• D. Legitimate loan made on favorable terms

Answer: (C)

Corrupt payments are often camouflaged as loans to avoid scrutiny. The three common loan-based disguises are an outright payment described as an innocent loan, a legitimate loan guaranteed by a third party, and a legitimate loan made on favorable terms to create the impression of normal business finance. A grant of funds, by contrast, is not a loan at all—it’s money given with no repayment obligation. Since the question asks for what is not one of the loan types used in corrupt payments, a grant of funds is the correct choice.

Corrupt payments are often camouflaged as loans to avoid scrutiny. The three common loan-based disguises are an outright payment described as an innocent loan, a legitimate loan guaranteed by a third party, and a legitimate loan made on favorable terms to create the impression of normal business finance. A grant of funds, by contrast, is not a loan at all—it’s money given with no repayment obligation. Since the question asks for what is not one of the loan types used in corrupt payments, a grant of funds is the correct choice.