If You Sign a Standard Bank Guarantee Form, for Which

question 26

Multiple Choice

If you sign a standard bank guarantee form, for which of the following would you be liable?

• A)All debts and liabilities at any time owing by the principal debtor to the Bank.
• B)Loans made by the Bank to the principal debtor now or in the future, which remain unpaid
• C)Interest and legal costs
• D)No more than the loan advanced at the time you signed the guarantee
• E)A, B, and C

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Definitions:

Net Capital Outflow

The difference between a nation's total investments outside the country and foreign investments within the country over a certain period.

Foreign-Currency Exchange

The act of changing one country's currency into another's for trade, travel, or investment purposes.

Budget Deficit

The financial situation where an entity's expenses exceed its revenues over a specified period, leading to borrowing or debt.

Budget Surplus

An excess of tax revenue over government spending