What is extortion?

Extortion is defined as the act of obtaining money, property, or services from an individual or entity through coercion, threats, or intimidation. This definition aligns with the correct choice, which emphasizes that the key element of extortion is the use of threats or force to compel someone to comply with demands. The focus on threats distinguishes extortion from other financial or property negotiations, revealing it as a criminal act rather than a lawful business transaction.

In contrast, the other options describe actions that are lawful or acceptable in a commercial context. Offering money in exchange for favors may involve negotiations or exchanges but does not inherently include threats. Negotiating for property sales and securing a loan with collateral are standard business practices devoid of any coercive element. These alternatives lack the crucial component of duress that defines extortion, thereby reinforcing understanding of what constitutes this particular crime.