How Does Check Washing Occur

question 13

Multiple Choice

How does check washing occur?

• A) False checks are submitted to banks within large batches of good checks in hopes that they will not be detected.
• B) The ink from a good check is chemically removed and then a new check can be written from that check.
• C) A check from one customer is stolen and the next check is used to cover that amount and so on.
• D) The check is altered or tampered.

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Definitions:

Tax Shelter

An investment vehicle that allows individuals or businesses to reduce or avoid taxes, legally through various deductions and credits.

Time Horizons

Time horizons refer to the length of time over which an investment or financial instrument is expected to be held or a financial goal to be achieved.

Defined Contribution Pension Plan

A retirement plan where employee benefits are based on the amount of money contributed and the performance of the investment options chosen.