What Is a 'Guarantee

question 11

Multiple Choice

What is a 'guarantee'?

• A)An arrangement in which a secured creditor has the right to sell the charged property on default by the debtor.
• B)A type of mortgage.
• C)An arrangement in which a person promises to repay a loan in the event that the debtor fails to do so.
• D)Security for a loan to a company over a particular asset or class of assets.

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Definitions:

International Trade

The exchange of goods and services between countries.

Current Account

An account of a country’s exports and imports of goods, services, and income.

Balance of Trade

The difference between the monetary value of a nation's exports and imports over a certain period. A positive balance means more goods were exported than imported, and vice versa.

World Trade Organization

An international body that deals with the rules of trade between nations, aiming to ensure trade flows as smoothly and predictably as possible.