How many types of holographic overlays exist?

• A. Two
• B. Four
• C. Three
• D. Five

Answer: (C)

The question tests how holographic overlays are categorized by their application and position in the card or document. There are three main kinds you’ll commonly see: surface overlays, which are a separate holographic film applied on top of the surface; laminate overlays, where the holographic element is embedded within the laminate layers during production; and embedded or substrate overlays, where the holographic feature is integrated into the card material itself during manufacturing. These three cover the typical ways security holograms are added and how they behave, offering distinct production methods and protective properties. Other counts would miss one of these practical implementations, which is why three is the best answer.