A-Level Economics Question Analysis Topic: Economics - Ownership

Exam Question:
In hire purchase, ownership of the property is transferred to the hirer on the payment of the ______ installment.
A) First
B) Second
C) Third
D) Last

Answer:

For A-Level Economics, you should know..

The theory of hire purchase
Hire Purchase System: If the seller agrees, a buyer who wants to acquire an asset but does not want to pay in one big sum may choose to pay in installments. Buyers are able to use the asset while making payments for it over the course of an agreed-upon length of time in installments. Hire purchase is the term for this agreement.

When it comes to hire purchase, it is on the last payment of the installment that ownership is transferred to the hire, hence D) is the correct option.

Work hard for your A-Level Economics examination!

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