A customer who purchases a television from Ace Appliance Store and pays for it in 36 monthly payments is most likely using:
A) trade credit.
B) charge account credit.
C) installment credit.
D) debit card credit.

Question

Quizplus · Accepted Answer

The fact that the customer is paying for the television in 36 monthly payments indicates that they are using installment credit, which allows the customer to make payments over time rather than paying for the entire purchase upfront. Trade credit and charge account credit are types of credit typically used in business-to-business transactions, while debit card credit is not a type of credit at all but rather a feature of certain debit cards that allows the cardholder to make purchases using funds that exceed their account balance.

A Customer Who Purchases a Television from Ace Appliance Store