Which of the Following Transfers Would Be Considered Fraudulent Under

question 63

Multiple Choice

Which of the following transfers would be considered fraudulent under the 2005 revisions of the Bankruptcy Code?

• A)Transfers that are intended by the debtor and creditor to be a contemporaneous exchange for new value.
• B)Transfers that led to the creation of a security interest in new property where new value was given by the secured party to enable the debtor to obtain the property.
• C)Transfers made in payment of a debt incurred in the ordinary course of the business of the debtor and the transferee.
• D)Transfers to or for the benefit of an insider under an employment contract and not in the ordinary course of business.

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Definitions:

Market Equilibrium

The state in which the supply and demand for a good or service are balanced, leading to a stable price.

Consumer Surplus

The variance between the total price consumers are ready and able to fork over for a good or service and the sum they ultimately pay.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable.

Consumer Surplus

The difference between the total amount that consumers are willing to pay for a good or service and the total amount they actually do pay.