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

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Definitions:

Aggregate Demand

The total demand for all goods and services within an economy at a given overall price level and in a given time period.

Lower Prices

A strategy or condition where the cost of goods or services is reduced to attract customers or gain a competitive edge in the market.

Stored-value Money

A type of electronic money that is stored on a card or a digital wallet, representing a claim on a predefined amount of currency.

Gift Cards

Prepaid stored-value money cards issued by a retailer or bank, used as an alternative to cash for purchases within a particular store or related businesses.