The Key Difference Between a Deposit and a Down Payment

question 40

Multiple Choice

The key difference between a deposit and a down payment is which of the following?

• A)if the agreement is breached, the holder can deduct any actual loss from the down payment, but must refund the balance. With a deposit, the holder can keep the entire amount no matter what the actual loss is;
• B)if the agreement is breached, the holder cannot deduct any money from the down payment. With a deposit, the holder can only keep a part of the money;
• C)there is no difference between the two
• D)a deposit cannot exceed more than 10% of the total price but a down payment can
• E)a down payment cannot exceed more than 10% of the total price but a deposit can

---

Definitions:

Maladaptive

Behaviors or thoughts that inhibit a person's ability to adjust healthily to particular situations.

Abnormal Behavior

Behavior that deviates significantly from what is considered typical or normal within a culture or society.

Ability to Function

Refers to the capacity of an individual to perform tasks or roles effectively in day-to-day activities or in a specific context.

Interferes

To obstruct or hinder processes or actions, causing disruption.