Which of the Following Statements Is True in Relation to Bank

question 44

Multiple Choice

Which of the following statements is true in relation to bank obligations to guarantors under the Code of Banking Practice?

• A)The bank must advise the guarantor about the minimum sum being guaranteed.
• B)The bank must inform the guarantor about the need to obtain independent advice.
• C)The bank is obliged under privacy laws from advising the guarantor about the debtor's capacity to repay the loan.
• D)All of the above.

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Definitions:

Law of Demand

A fundamental economic principle stating that as the price of a product decreases, demand for it usually increases, and vice versa.

Surpluses

Situations in which the quantity of a good or service supplied exceeds the quantity demanded at the current price.

Market Prices

Refers to the specific values at which commodities, securities, or services are traded in a competitive marketplace.

Shortages

Occur when the demand for a good or service exceeds its supply in a given market, often leading to price increases.