Multiple choice

Bank X gives a bank guarantee on behalf of one of its customers against some payment to be deposited by the customer in a pending court case. Such guarantee can be classified as

(a) financial guarantee (b) performance guarantee (c) deferred payment guarantee (d) statutory guarantee

  1. (a) or (d)

  2. (a) only

  3. (d) only

  4. (b) or (c)

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

In case the bank guarantees on behalf of one of its customers against some payment to be deposited by the customer in a pending court case, such guarantees are classified under statutory guarantees.