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What is the purpose of a deferred payment guarantee?
  • a)
    To ensure timely payment by the buyer to the seller
  • b)
    To guarantee quality of goods or services delivered
  • c)
    To protect the buyer from any financial loss
  • d)
    To facilitate smooth transportation of goods or services
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
What is the purpose of a deferred payment guarantee?a)To ensure timely...
  • A deferred payment guarantee is a type of financial instrument that is commonly used in international trade transactions. It provides assurance to the seller that they will receive payment for their goods or services, even if the buyer defaults on the payment. The purpose of a deferred payment guarantee is to ensure timely payment by the buyer to the seller, thereby mitigating the risk of non-payment and helping to facilitate trade. Options B, C, and D are not the primary purposes of a deferred payment guarantee.
  • Hence, the correct answer is option (a).
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What is the purpose of a deferred payment guarantee?a)To ensure timely payment by the buyer to the sellerb)To guarantee quality of goods or services deliveredc)To protect the buyer from any financial lossd)To facilitate smooth transportation of goods or servicesCorrect answer is option 'A'. Can you explain this answer?
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