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  3. In Western countries people have been using the installment plan since the first half of the twentieth century. Today, a large n

In Western countries people have been using the installment plan since the first half of the twentieth century. Today, a large n

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问题     In Western countries people have been using the installment plan since the first half of the twentieth century. Today, a large number of families in Great Britain buy furniture, household goods and cars by installments. In the US, the figure is much higher than in Great Britain, and people there spend over 10 percent of their income on the installment plan.
    The price of an article bought on installments is always higher than the price that would be paid by cash. There is a charge for interest. The buyer pays one quarter or one third of the price as a down payment when the goods are delivered to him. He then makes regular payments, weekly or monthly, until the full price is paid up. The legal ownership of the goods remains with the seller until the final payment has been made.
    Installment buying has advantages and disadvantages. It can help couples with small incomes to furnish their homes and start housekeeping. It increases the demand for goods, and in this way helps business and employment. There is, however, the danger that when business is bad, installment buying may end suddenly, making business much worse. This may result in a great increase in unemployment. If the people on the installment plan lose their jobs, they will probably not be able to make their payments. If great numbers of people are not able to pay their installment debts, there is a possibility that businessmen cannot collect their debts and will therefore lose money. If businessmen lose money or fail to make a satisfactory profit, it becomes more likely to have a depression. This is why, in some countries, the government controls the installment plan by fixing the amount of the down payment to discourage people from buying more than they can pay for on the installment plan.
Goods bought on installments are more expensive than goods bought by cash because______.
选项 A、the buyer has to pay extra money as interest
B、the delivery of the goods charges extra money
C、the buyer has to pay a down payment
D、the service offered by installment plan charges extra money
答案A
解析 细节理解题。根据第二段第二句“There is a charge for interest．”可知分期付款购买的物品，其价格要比用现金购买的价格高，因为要加收利息。
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