Chapter 12 - Household Purchases

Question 1

Credit purchase

Answer 1

Receiving goods now but paying for them at a later date

Question 2

Credit/store card

Answer 2

Consumer receives up to one month credit before paying for the good

Question 3

Renting

Answer 3

The consumer pays for the use of the good but never actually owns the good

Question 4

Hire purchase

Answer 4

Paying for an item in instalments over a period of time. You don’t own the item until the final payment is made

Question 5

What information must a hire purchase add contain

Answer 5

• Original cash price of the good
• The total cost of purchasing the code on HP
• The number and cost of the payments
• How often you have to make payments
• The APR of interest
• Do you have to pay a deposit at the beginning or end payment

Question 6

Cash purchase

Answer 6

Goods and services paid for immediately