Types of consumer credit：練習問題

Which type of consumer credit involves an agreement where the legal ownership of the goods does not pass to the buyer until the very last installment has been paid?

Which statement correctly identifies a key difference between credit cards and store cards as forms of consumer credit?

In a hire purchase agreement, identify who legally owns the goods during the repayment period and when the ownership officially transfers to the consumer.

Compare store cards and credit cards by identifying a primary disadvantage of store cards regarding their interest rates and scope of use.

A consumer wishes to buy a high-end television costing \(\$2,400\). They are considering using either a credit card or hire purchase.

(a) State one advantage of using a credit card over hire purchase for this transaction.
(b) Explain the concept of ownership in a hire purchase agreement and how it differs from a credit sale.

A consumer is buying a car with a cash price of \(\$15,000\). The garage offers a hire purchase plan:
- A deposit of \(20\%\) of the cash price.
- \(36\) monthly installments of \(\$450\) each.

(a) Calculate the total amount paid using the hire purchase plan.
(b) Calculate the cost of credit (interest) paid by the consumer.
(c) Discuss why a consumer might choose informal credit from a local small retailer instead of a formal hire purchase agreement from a large dealership.