General Studies · Working Capital Management
Which of the following is a classic example of an off-balance sheet financing technique that a commercial bank can offer to a corporate borrower?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Underwriting and issuance of corporate bonds
- 2Sanctioning a short-term Cash Credit (CC) limit
- 3Providing a Deferred Payment Guarantee (DPG)✓
- 4Sanctioning an unsecured long-term term loan
Correct answer
Providing a Deferred Payment Guarantee (DPG)
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