Question

What happens to the lender's risk under a Third-Party Guarantee if the guarantor defaults?

A The risk is permanently dissolved
B The risk automatically comes back to the lender
C The risk shifts to the Reserve Bank of India
D The risk converts into a cash collateral asset
E The risk is covered by the judicial court system
Practice Next

Hey! Ask a query

🎓
Think You're Ready for RBI Grade B?
RBI Grade B 2026 Phase 1 Memory Based Paper
  • 200 Questions with Detailed Solutions
  • Section-wise Coverage (GA, English, Quant & Reasoning)