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Current income for most consumers is their wages or salaries. This income is used to pay regular and day-to-day expenses such as
Current income for most consumers is their wages or salaries. This income is used to pay regular and day-to-day expenses such as
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2012-05-24
66
问题
Current income for most consumers is their wages or salaries. This income is used to pay regular and day-to-day expenses such as rent, food, movies, gasoline, newspapers, haircuts, and so on. But sup-pose a person is faced with an unexpected expense too big to be paid out of current income, it may be an illness or costly household repairs. In Frank and Sandy Dexter’s case, the roof on their house had to be replaced. They did not have enough savings to cover the cost, so they borrowed the money needed. They then repaid the loan with small and regular payment out of their future income. By using credit, they avoided what might have been a serious hardship.
Credit also enables consumers to buy goods and services when they need them most. For example, when does a married couple most need a house? While their children are young and living at home. It would take most couples many years to save enough money to pay cash for a house. By then, their children would be grown, and the house would not be needed so much. In the meanwhile, they would have to continue paying rent out of current income. By using credit, a couple can buy a house and live n it while they pay for it. The money they would otherwise spend for rent could go to the payment.
What is true of houses is true of many goods that consumers buy today, such as appliances, automobiles, and furniture. By using credit, consumers can "buy now and pay later" as the ads say. They have the use of the goods while paying for them. Today many high school graduates are using credit to pay for additional education. They will pay off their loan with money earned in the future from full-time jobs.
With regard to credit, what do houses have in common with goods that consumers buy today?
选项
A、Both can be bought on credit.
B、Neither can be used until the loan has been paid.
C、Both must be paid as soon as they are bought.
D、Both should be paid in cash.
答案
A
解析
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