A Payment Made by an Insolvent Debtor That Gives Preferential

question 13

Multiple Choice

A payment made by an insolvent debtor that gives preferential treatment to one creditor over another is called which of the following?

• A) An unfair payment
• B) An unequal payment
• C) A preferential payment
• D) An unendorsed payment
• E) An unapproved payment

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Definitions:

Bond Issue

The process by which a borrower issues bonds to investors in order to raise capital under specific terms of repayment and interest.

Deposited Cash

Cash that has been placed into a bank account or financial institution for safekeeping or to earn interest.

Bond Refunding

The process of retiring existing bonds by issuing new bonds, usually to take advantage of lower interest rates.

Advantageous

Providing a benefit or favor, leading to improvement or an increased chance of success.