Regarding the Bankruptcy Filing of an Employer, Which of the Following

question 23

Multiple Choice

Regarding the bankruptcy filing of an employer, which of the following statements is NOT true?

• A)employees are secured creditors
• B)employees are unsecured creditors
• C)employees as creditors stand high in priority in a Chapter 11 bankruptcy filing

---

Definitions:

Nominal Interest Rate

The interest rate before adjustments for inflation, reflecting the rate of return as stated by the financial institution.

Real Interest Rate

The interest rate adjusted for inflation, reflecting the true cost of borrowing or real yield on an investment.

Nominal Wages

The amount of money paid to workers before adjusting for inflation, reflecting the face value of earnings irrespective of purchasing power.

Annual Rate

A percentage that represents the growth, yield, or return of an investment or account over a one-year period.