Question

Which type of credit is usually used for cars, mortgages, and student loans?. .

a.consumption credit.
b.installment plan.
c.secured credit card.
d.service credit

Answer 1

b. installment plan.

It is a method for repaying the complete loan amount for an item during the fixed tenure. It acts as credit system for buying commodities, such as cars or furniture, or sometimes education loan in which the consumer takes ownership of the commodity on payment of a security amount and makes the purchase by repaying a series of monthly installments whereas the dealer preserves ownership of the products or services till the final installment is paid.

Answer 2

Installment plan: Most of us can not pay for car loans, or any of the above mentioned loans, we have so many other bills to pay, and trying to pay cash, just does not work for most of us.  You may have a parent or grand parent that have that kind of money, but not usually.