Homework 4 - Methods of payment

Which method of payment matches this description:

When you make a payment, the money is taken directly out of your account

• Direct Debit

• Hire Purchase

• Credit Card

• Debit Card

• None of these

Which method of payment matches this description:

When you make a payment the amount of money gets added to your total borrowings and you pay it back later

• Direct Debit

• Hire Purchase

• Credit Card

• Debit Card

• None of these

Which method of payment matches this description:

You give an instruction to your bank to release money to pay bills regularly from your account

• Direct Debit

• Hire Purchase

• Credit Card

• Debit Card

• None of these

Which method of payment matches this description:

You sign an agreement to pay for something over a period of time, paying regular monthly payments where you will own the product outright at the end

• Direct Debit

• Hire Purchase

• Credit Card

• Debit Card

• None of these

Which method of payment would we use in the following scenario: Lisa would like to purchase a new flat. she has a deposit of £20,000 however she cannot afford the whole amount now.

• Hire Purchase

• Credit Card

• Overdraft

• Bank Loan

• Mortgage

Which method of payment would we use in the following scenario: Jamie's Kitchen requires to buy a new fridge, however he doesn't have enough funds in his bank account.

• Hire Purchase

• Credit Card

• Overdraft

• Bank Loan

• Mortgage

Which method of payment would we use in the following scenario: Rachel owes her mobile phone company £40 tomorrow as per her agreement, however she only has £10 in her bank account and doesn't get paid for 3 days.

• Hire Purchase

• Credit Card

• Overdraft

• Bank Loan

• Mortgage

Which method of payment would we use in the following scenario: Sahil has £2,000 in his bank account and has decided to buy a new football strip for his favourite team for £75 with his name on the back.

• Debit Card

• Credit Card

• Overdraft

• Bank Loan

• Mortgage

Which of these is NOT a method of borrowing?

• Credit card

• Debit Card

• Bank Loan

• Hire Purchase

• Mortgage

Which of the following is a risk of taking out a mortgage?

• You could be sold into slavery

• You could have to leave your job

• You could need to get a haircut

• You could have your house repossessed if you don't keep up with payments