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    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. Correct Answer Incorrect Answer
    B A loan provided by a bank to a business. Correct Answer Incorrect Answer
    C A credit card issued by a bank. Correct Answer Incorrect Answer
    D A fixed deposit account with a bank. Correct Answer Incorrect Answer

    Solution

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

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