Which of the Following Is an Example of an Injection

question 53

Multiple Choice

Which of the following is an example of an injection into the circular flow of income and expenditure?

• A)Consumption
• B)Exports
• C)Taxes
• D)Saving
• E)Government borrowing

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Definitions:

Priority Of Payment

The order in which debts or claims from creditors are paid in the event of liquidation.

Deferred Creditors

Creditors that hold certain debts that are payable to the contributories of the company ahead of repayments of capital to those contributories.

Ordinary Unsecured Creditors

Creditors whose debts have no preferential treatment under the Corporations Act and are the last to be paid before funds are returned to contributories.

Preferential Unsecured Creditor

A creditor who is not secured by collateral but has the right to be paid before other unsecured creditors in the event of a debtor's bankruptcy.