Basic Details
Word: Insolvency
Part of Speech: Noun
Meaning: The state of being unable to pay debts that one owes.
Synonyms: Bankruptcy, financial distress
Antonyms: Solvency, financial stability
Idioms and Phrases
- In the red: To be in debt or to have negative financial balance. Example: "After the expensive holiday, we found ourselves in the red and had to budget carefully for the next few months."
- Throw good money after bad: To spend more money on something that is already a loss. Example: "Investing more in the failing project would be throwing good money after bad."
Usage Examples
Example 1: The company declared insolvency after failing to recover from its financial losses.
Example 2: Many small businesses faced insolvency due to the economic downturn caused by the pandemic.
Example 3: The lawyer advised her client on the steps to take when dealing with insolvency.
Fun Fact
The word "insolvency" comes from the Latin word "insolvens," which means "not able to pay." It is often associated with legal proceedings where creditors claim their money back when a person or company cannot pay their debts.
Famous Quote
"A company that is not making money will eventually go into insolvency, and that should be the main concern of every business." Anonymous
Multiple Choice Questions (MCQs)
1. What does "insolvency" mean?
a) Being able to pay debts
b) The state of being unable to pay debts
c) A type of investment
d) A government grant
Answer: b) The state of being unable to pay debts
2. Which of these is a synonym of "insolvency"?
a) Profit
b) Bankruptcy
c) Wealth
d) Success
Answer: b) Bankruptcy
3. Which word is an antonym of "insolvency"?
a) Financial distress
b) Solvency
c) Debt
d) Loss
Answer: b) Solvency
4. In which context is "insolvency" correctly used?
a) The person won a lottery and is now wealthy.
b) After weeks of overspending, she was facing insolvency.
c) The company released a new product that increased sales.
d) He inherited a large sum of money.
Answer: b) After weeks of overspending, she was facing insolvency.
5. Which idiom suggests being in financial trouble?
a) Moving mountains
b) In the red
c) Over the moon
d) Like a fish out of water
Answer: b) In the red
