GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A guarantee issued to the guarantor
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By banks from ECGC covering export risk
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By banks from the beneficiary of the guarantee in whose favour the guarantee is to be issued
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By bank from customers on whose behalf the banks have to issue guarantees in favour of third parties, such as government department, Public bodies, Corporations etc.
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Detailed explanation-1: -A counter guarantee protects the bond-issuing bank against the risk that the exporter will be unable or unwilling to pay if the contract bond is called. The cover ratio is 90 percent, cover up to the full sum guaranteed is possible in justified, exceptional cases.
Detailed explanation-2: -Retrospective guarantee – It is a guarantee issued when the debt is already outstanding. Prospective guarantee – Given in regard to a future debt. Specific guarantee – Also known as a simple guarantee, it’s a type that is used when dealing with a single transaction, and therefore a single debt.
Detailed explanation-3: -A bank guarantee is a type of financial backstop offered by a lending institution. The bank guarantee means that the lender will ensure that the liabilities of a debtor will be met. In other words, if the debtor fails to settle a debt, the bank will cover it.