Answer-What best describes a Bank Guarantee?

A Bank Guarantee is a financial institutions promise to pay a specific amount to a beneficiary in case the party that contracted the guarantee defaults on their obligations.

Question

What best describes a Bank Guarantee?

A A financial institution's promise to pay a specific amount in case of default by a party on their contractual obligations.

B A loan provided by a bank to a business.

C A credit card issued by a bank.

D A fixed deposit account with a bank.

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What best describes a Bank Guarantee?

Solution