The Party with the Highest Priority in a Voluntary Winding-Up

question 16

Multiple Choice

The party with the highest priority in a voluntary winding-up is:

• A)the liquidator;
• B)creditors secured via a floating charge;
• C)workers compensation insurers;
• D)employees.

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Definitions:

Deposits

Deposits refer to the funds that customers place into their bank accounts, which can include savings, checking, and other types of accounts.

Required Reserve Ratio

The fraction of deposits that regulators require a bank to hold in reserve and not lend out.

Checkable Deposits

Bank account balances that can be withdrawn using checks, debit cards, or electronic transfers.

Government Securities

Financial instruments issued by a government to raise funds from the public. These can include bonds, treasury bills, and other debt instruments with a promise to pay specified sums at future dates.