[amp_mcq option1=”special guarantee” option2=”continuing guarantee” option3=”specific guarantee” option4=”None of the above” correct=”option2″]
The correct answer is: B. continuing guarantee.
A continuing guarantee is a guarantee that extends to a series of transactions. It is a type of guarantee that is used when there is a possibility that the principal debtor may not be able to repay the debt. The guarantor agrees to pay the debt if the principal debtor does not.
A special guarantee is a guarantee that is given for a specific transaction. It is a type of guarantee that is used when the principal debtor is borrowing money for a specific purpose. The guarantor agrees to pay the debt if the principal debtor does not repay the debt.
A specific guarantee is a guarantee that is given for a specific amount of money. It is a type of guarantee that is used when the principal debtor is borrowing a specific amount of money. The guarantor agrees to pay the debt if the principal debtor does not repay the debt.
None of the above is not the correct answer because it does not describe a type of guarantee.