Which One of the Following Actions by a Debtor Constitutes

question 108

Multiple Choice

Which one of the following actions by a debtor constitutes an act of bankruptcy?

• A) a fraudulent conveyance of liabilities to one of the creditors
• B) a fraudulent transfer of money or assets
• C) assignment of liabilities to a trustee
• D) having more debts than assets
• E) generally meeting liabilities as they become due

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Definitions:

Disposable Income

The financial stipend available to households for spending and saving endeavors after income taxes are considered.

Autonomous Consumption

The level of consumption expenditure that occurs when income levels are zero, reflecting the basic level of consumption that does not depend on current income.

APS

An acronym for Average Propensity to Save, which is the ratio of savings to the total net disposable income.

Total Saving

The sum of personal, business, and government savings within an economy.