Question

Which term is best defined as a deposit to the seller that shows the intention of completing the transaction? Select one of the options below as your answer: A. down payment B. earnest money C. mortgage application fee

Answer 1

The correct option is A. Down payment is defined as the initial payment that is usually made to the seller when goods are bought on credit. Down payment is an indication that the buyer meant to buy the goods and that he will complete the payment later. Down payment are usually a certain percentage of the worth of the goods that are to be bought.