Question

select the correct answer
what is down payment with regard to buying a house?
a. a part of the purchase price paid in installments
b. a part of the purchase price paid in cash
c. an interest on the purchase price

Explanation:

A down payment for a house is a portion of the total purchase price paid upfront in cash (or equivalent) to the seller, reducing the amount to be financed. Option A describes installment payments (not down payment), and Option C is incorrect as down payment is not interest. Option B correctly defines it.

Answer:

B. a part of the purchase price paid in cash