Purchasing goods by making small payments over a set period of time is called what?

Purchasing goods by making small payments over a set period of time is called what?

• A. Installment Buying
• B. Interest
• C. Iron Curtain
• D. Immigrant

Answer: (A)

Paying for goods in small, regular payments over a set period is known as installment buying. It lets you take the item now and spread the cost over time with scheduled payments, often including interest as a fee for borrowing. This captures the idea of buying on a payment plan rather than paying the full price upfront. The other terms don’t fit: interest is the charge for borrowing money, not the payment method itself, and Iron Curtain and Immigrant are unrelated concepts.

Paying for goods in small, regular payments over a set period is known as installment buying. It lets you take the item now and spread the cost over time with scheduled payments, often including interest as a fee for borrowing. This captures the idea of buying on a payment plan rather than paying the full price upfront. The other terms don’t fit: interest is the charge for borrowing money, not the payment method itself, and Iron Curtain and Immigrant are unrelated concepts.