Tag: economics

Quizzes (361) Questions (3598)

Questions Related to economics

Multiple choice installments banking business and commercial activities economics maths

_________ allows a customer to buy a product by paying only a part of the cash price, and the remaining amount can be paid in instalments.

  1. Instalment scheme

  2. hire purchase scheme

  3. loan scheme

  4. cash scheme
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Instalment scheme allows customers to pay a sum of money in small parts in a fixed period of time. A part of the amount of product is paid at the time of purchase and rest is paid in regular periodic instalments.

Multiple choice installments banking business and commercial activities economics maths

Which of the following does not give a difference between a hire purchase and a normal purchase?

  1. Timing of payment for asset.

  2. Quality of asset purchased.

  3. Legal ownership of asset.

  4. Total cost of asset.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Quality of asset purchased does not give a difference between a hire purchase and a nominal purchase

Multiple choice installments banking business and commercial activities economics maths

The depreciation on an asset purchased through hire purchase should be:

  1. Based on the total cost including interest

  2. Based on the cost price of the asset only

  3. Should be straight line only

  4. No depreciation should be provide until the final payment is made
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The depreciation on an asset purchased through hire purchase should be based on the cost price of the asset only.

Multiple choice installments banking business and commercial activities economics maths

When does the asset legally belong to the purchaser under a hire purchase agreement?

  1. Final instalment is paid and purchaser agrees to a legal option to buy the asset

  2. Purchaser agrees to legal option to buy the asset

  3. Final instalment is paid

  4. On date of first instalment in repayment
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

When, final installment is paid and purchased agrees to a legal option to but the asset, then the asset legally belong to the purchaser under a high purchase agreement.

Multiple choice installments banking business and commercial activities economics maths

In hire purchase, ownership of the property is transferred to the hirer on the payment of the ______ instalment.

  1. first

  2. second

  3. third

  4. last
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

In hire purchase, ownership of the property is transferred to the hire on the payment of the last installment