10 free, exam-style Certificate for Specialists in Demand Guarantees (CSDG) practice questions with answers and explanations. No signup required. Work through them below, then take the full free CSDG practice test to study every exam domain.
The CSDG exam has 78 questions and runs 3 hours 15 minutes.
Bank G has issued a demand guarantee subject to URDG 758 in favour of Beneficiary B. Bank G receives a demand that complies with the terms of the guarantee. The applicant immediately contacts Bank G, insisting it has fully performed the underlying contract and that B's demand is therefore unjustified. How should Bank G respond?
Correct answer: B - Pay the demand, as the guarantee is independent of the underlying relationship
Under a construction contract, the employer withholds 5% from each interim payment as security against latent defects. The contractor wishes to receive these withheld funds in full now, and is willing to provide the employer with security for their return should defects later emerge. Which type of guarantee meets this need?
Correct answer: A - Retention money guarantee
A parent company instructs its bank to issue a demand guarantee supporting the contractual obligations of its overseas subsidiary, and undertakes to indemnify the bank. The subsidiary is named in the guarantee as the party whose obligations are supported. Under URDG 758, the parent company is the:
Correct answer: C - Instructing party
Bank F receives a demand under a guarantee subject to URDG 758. The demand does not comply, but Bank F sends no notice of rejection until the seventh business day following presentation. What is the consequence for Bank F under URDG 758?
Correct answer: D - Bank F is precluded from claiming the demand does not comply and must honour it
A guarantee subject to URDG 758 states that payment will be made 'provided the goods have been shipped by 30 June', but it does not require any document evidencing shipment. When examining a demand, how should the guarantor treat this shipment condition?
Correct answer: A - Treat the condition as not stated and disregard it
A standby letter of credit is issued subject to ISP98. The issuer receives a presentation that does not comply. Within how many business days does ISP98 deem a notice of dishonour to be 'not unreasonable'?
Correct answer: B - Three business days
An applicant is convinced that a beneficiary's demand under a URDG 758 guarantee is fraudulent. Following the approach taken by most courts, what is the applicant's primary recourse to prevent the guarantor from paying?
Correct answer: D - Apply to a court for an injunction restraining payment
A guarantee subject to URDG 758 does not exclude the requirement for a supporting statement. The beneficiary presents a demand for the full guarantee amount but includes no statement indicating in what respect the applicant is in breach. The guarantor should:
Correct answer: C - Reject, because the demand does not comply with Article 15
While checking a guarantee application before issuance, an officer notes the following four items. Which one is a genuine discrepancy that must be raised with the applicant?
Correct answer: B - The requested expiry date falls before the date of the application
A beneficiary under a URDG 758 guarantee wishes to transfer the guarantee to a third party. The guarantee makes no reference to transferability. Under URDG 758, the guarantee is:
Correct answer: C - Not transferable, because it does not state that it is transferable
The Certificate for Specialists in Demand Guarantees (CSDG) exam is organized into 1 knowledge domains. These free practice questions are drawn from across them so you can see where you're strong and where to study:
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