Question

when one receives a product or service now, but pays for it later, it is known as what?
a. credit
b. debit
c. deduction
d. interest

all the following are examples of installment loans except:
a. credit card
b. car loan
c. mortgage
d. student loan

Explanation:

First Question

To determine the correct answer, we analyze the definitions of each option:

• Option a (Credit): Credit refers to receiving a product or service now and paying for it later. This matches the description in the question.
• Option b (Debit): Debit involves paying for a product or service immediately, typically by deducting funds from an account. It does not fit the "pay later" scenario.
• Option c (Deduction): Deduction usually refers to subtracting an amount from a total, such as tax deductions or payroll deductions. It is not related to receiving goods/services now and paying later.
• Option d (Interest): Interest is the cost of borrowing money or the return on investment. It is not the act of receiving goods/services now and paying later.

Based on these definitions, the correct answer is a (Credit).

To determine the exception, we analyze the nature of each option:

• Option a (Credit card): A credit card is a revolving credit account, not an installment loan. Revolving credit allows users to borrow up to a pre-approved limit and make minimum payments, with the balance revolving from month to month.
• Option b (Car loan): A car loan is a typical installment loan, where the borrower repays the loan in fixed monthly installments over a set period.
• Option c (Mortgage): A mortgage is an installment loan used to purchase real estate, with regular payments made over a long-term period (e.g., 15, 30 years).
• Option d (Student loan): A student loan is an installment loan, where the borrower repays the loan in fixed installments over a specified period after completing education (or during a grace period).

Since a credit card is a form of revolving credit, not an installment loan, it is the exception.

Answer:

a. Credit

Second Question