Multiple choice

Banks issuing guarantees are structured according to

  1. security

  2. maturity

  3. purpose

  4. All of the above

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

As a part of business, banks issue guarantees on behalf of their customers for various purposes. The guarantees executed by banks comprise both performance guarantees and financial guarantees. The guarantees are structured according to the terms of agreement (security, maturity and purpose).