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Chapter 12

Household Purchases

TermDefinition
Buying goods on credit Receiving goods now but paying for them later
Renting The consumer pays for the use of a particular good for a short or long period of time without ever owing the good.
Credit cards/Store cards By using store cards and credit cards, the consumer receives up to one month's credit before they have to pay for the goods and services they purchased.
Hire Purchase Hire purchase is used by households to purchase goods such as fridges, home computers, AV equipment, etc. It involves 3 parties the buyer, the seller and the financial institution.
Cash Purchase With a cash purchase, the goods and services are paid immediately with notes and coins, laser card, smart card and by cheque.
Created by: jdunnestmarks
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