Multiple choice

Which of the following is not correct with regard to a deferred payment guarantee?

  1. Guarantee is issued normally for purchase of capital assets on long term credit from the supplier.

  2. Guarantee is issued in lieu of term loan and appraisal is also done like a term loan.

  3. Difference between TL and such guarantee is of outlay of funds.

  4. This is a payment guarantee issued to your importer for deferred or timely receiving of the goods.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

This is a payment guarantee issued to your exporter for deferred or timely payment of the goods, and corresponding interest.

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