Which of the Following Is TRUE Regarding the Significance of a Guarantee

question 19

Multiple Choice

Which of the following is TRUE regarding the significance of a guarantee?

• A) A guarantee is a contingent rather than an absolute liability.
• B) A guarantor makes her promise to the debtor, not to the creditor.
• C) A guarantor's duty to pay arises upon notification by the debtor.
• D) Strictly speaking, the creditor must notify the guarantor of the default.
• E) The effect of a guarantee is more encompassing than that of an indemnity.

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Definitions:

Diagnostic Testing

A process used in medicine and other disciplines to identify the presence or absence of a condition, disease, or anomaly.

Educational Ability

The capacity or skill set a person possesses which contributes to their level of performance in educational settings.

Grade Level

The educational stage or class that corresponds to a student's year of schooling, often based on age.

Poorly Made Tests

Describes tests that are flawed in design, reliability, validity, or fairness, leading to inaccurate or misleading assessment outcomes.