69th BPSC Prelims (2023), question 114

📈 Economy

114. 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.