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Types of credit sales - SS2 Commerce Past Questions and Answers - page 1

1

What is a mortgage?

 

A

A loan used for purchasing a car

 

B

A loan used for purchasing real estate

 

C

 A loan used for education expenses

 

correct option: b

A loan used for purchasing real estate

 

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2

What is an overdraft?

 

A

A loan used for purchasing real estate

 

B

 A facility allowing you to withdraw more money from your bank account than available

 

C

A deferred payment option for purchases

 

correct option: b

 A facility allowing you to withdraw more money from your bank account than available

 

Users' Answers & Comments
3

What is the purpose of credit deferred payment?

 

A

To acquire goods or services immediately and pay for them over time

 

B

To make a one-time payment for a purchase

 

C

To withdraw more money from a bank account than available

 

correct option: a

To acquire goods or services immediately and pay for them over time

 

Users' Answers & Comments
4

What do finance houses or leasing companies provide?

 

A

Loans for purchasing real estate

 

B

Financing options for acquiring assets without outright purchase

 

C

Facilities for withdrawing more money from a bank account than available

 

correct option: b

Financing options for acquiring assets without outright purchase

 

Users' Answers & Comments
5

What can a loan be used for?

 

A

Purchasing real estate

 

B

Funding education expenses

 

C

Various purposes such as purchasing a car, funding education, or covering unexpected expenses

 

correct option: c

Various purposes such as purchasing a car, funding education, or covering unexpected expenses

 

Users' Answers & Comments
6

Define overdraft in simple terms.

 

An overdraft is a facility provided by a bank that allows you to withdraw more money from your bank account than what is available in the account, creating a temporary negative balance.

 

Users' Answers & Comments
7

What is the primary purpose of credit deferred payment?

 

The primary purpose of credit deferred payment is to allow individuals to acquire goods or services immediately and pay for them over time, typically in installments or after a specific period.

 

Users' Answers & Comments
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