2-20 : Unit 9 : Surety Bonds Exam 2025/2026 Questions With Completed Solutions.

2-20 : Unit 9 : Surety Bonds

A bond required of investment companies guaranteeing against securities fraud is
known as:

a. Franchise bond
b. License bond
c. Blue Sky bond
d. Permit bond - ANS-c. Blue Sky bond
\A bond that guarantees that the contractor will return and correct faulty work or
replace defective materials is called:

a. Supply Contract bond
b. Contract bond
c. Maintenance bond
d. Indemnity bond - ANS-c. Maintenance bond
\A bond which guarantees that all labor and materials will be paid by contractor on
completion of work is called:

a. Supply bond
b. Completion bond
c. Fiduciary bond
d. Payment bond - ANS-d. Payment bond
\A bond which guarantees the performance of one appointed by a court such as a
guardian is known as:

a. Performance Bond
b. Fiduciary Bond
c. License Bond
d. Public Official Bond - ANS-b. Fiduciary Bond
\A developer is told that he must procure a bond guaranteeing that streets, sewers,
sidewalks and other promised amenities will be provided. The bond he must have is
called:

a. Permit bond
b. Supply Contract bond
c. Indemnity bond
d. Subdivision bond - ANS-d. Subdivision bond
\All are Contract Bonds EXCEPT:

a. Bid Bond
b. Performance Bond