69th BPSC Prelims (2023), question 114

📈 Economy

  1. Insolvency/bankruptcy: 1. Bankruptcy = unable to pay debts as due. 2. Insolvency = legal process liquidating/reorganizing debtor assets. 3. Bankruptcy is a state, insolvency is the conclusion. 4. IBBI is the regulatory body. Which is/are correct?

    1. 1, 2 and 3
    2. 2, 3 and 4
    3. Only 4
    4. Only 1 and 2
    Show answer

    Answer: C — Only 4

    The definitions in 1-3 are actually swapped (insolvency is the state/inability to pay, bankruptcy the legal conclusion); only statement 4 (IBBI as regulator) is correct.

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