Preference in position among creditors when it comes to repayment is called
A)seniority.
B)securitization.
C)time preference.
D)absolute return.

Question

Quizplus · Accepted Answer

Seniority refers to the order in which creditors are paid back in the event of bankruptcy or default. The most senior creditors are paid first, followed by less senior creditors. This hierarchy is determined by the terms of the debt agreement and the type of debt instrument involved.

Preference in Position Among Creditors When It Comes to Repayment