 In this section, we will discuss the concept of financial guarantees. So what is meant by a financial guarantee? When we look at the financial sector of an economy, we see that there is a lot of financial transactions that are involved and most of them are based upon a certain time period. They involve future transactions. So in that case, there is a possibility that people might default. People won't return the money. They will default. In this context, in order to avoid the credit risk, the institutions impose financial guarantees or they give financial guarantees so that when the time period involves a long-term basis or a short-term basis, over time, if your repayments are present, such transactions are taking place where transactions are taking place over a long-term basis or a short-term basis, in order to provide protection, the concept of financial guarantees is used and when we look at the different types of credit cards or whatever your transactions are, where time is involved over your repayment, there financial guarantees are given for a guarantee where institutions or firms guarantee that we give an assurity that the other party will repay you. The decided time period is a pre-agreed time period. Accordingly, these repayments will come. So when we look at the overall entire business of credit cards, loans, where the time period is involved over repayment, you can see the concept of financial guarantees being implemented. And when we look at the entire business of credit cards, where the different vendors, different shops, different stores, when you do shopping using a card, they do not get the money immediately into their accounts. You do not immediately pay cash to their cashier. You swipe the card. In that context, the banks provide the financial guarantee to those entities where you do transactions in all the stores and companies and do not pay immediate pre-payment. You are using a simple piece of plastic card which you swipe and return. On the back-end, there is a guarantee of a bank. That type of guarantee is termed as a financial guarantee which ensures that the entities where you are shopping, where you are doing business, on our behalf, you give them this amount of gants transaction. We guarantee that the money provided to you. So this is how this entire business of loans and credit cards or wherever there is a credit risk involved, you can see that it operates as a financial guarantee. If we look at the different types of financial guarantors, they include various types of firms, banks, financial guarantor. They will take collateral from you. They assess your financial position. After that, they guarantee it on your behalf. In certain cases, the governments also become the financial guarantor. They promise they are sure that we will make it sure that the concerned parties have taken loans from you or taken something on credit, they will return it to you. So in certain cases, governments can also become the financial guarantors. But the work of your entire financial structure cannot operate without the financial guarantor. Because there are a large number of transactions that are involved and most of them are time-based. Where there is a gap on time, the guarantee is essential and these are the various types of characters or institutions or entities who provide financial guarantees to the people who are giving you money or they are giving you credit over a period of time or they need to get over this risk of lending you credit where financial guarantors play a pivotal role in protecting or managing the risks that are taken up by various organizations or companies.