Banking · Deferred Payment Guarantee
The risk element which is the primary concern when a bank issues a Deferred Payment Guarantee (DPG) is:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The risk of fluctuating exchange rates.
- 2The risk that the buyer/borrower will fail to pay the seller/beneficiary on the due date.✓
- 3The risk of inadequate security provided by the borrower.
- 4The risk of interest rate changes during the guarantee period.
Correct answer
The risk that the buyer/borrower will fail to pay the seller/beneficiary on the due date.
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