What is a credit guarantee

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Problem 1: What is a credit guarantee?

A. It is an understanding by a counterparty to provide additional information for credit evaluation purposes.

B. It is a third-party undertaking to make good any losses if the counterparty defaults on an obligation.

C. It is a surety deposit placed with a third party, such as a bank.

D. It is a form of credit insurance better known as 'credit factoring'.

Reference no: EM132917808

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