1) What is the most likely reason for paying for something in advance? a) bank needs it. b) buyer chooses to pay this way. c) credit card company requires it. d) seller insists on it. 2) To encourage people to pay in advance, train season tickets are usually: a) discounted. b) free. c) premium-priced. d) sold online only. 3) 'Paying in advance' means: a) getting credit and paying later. b) paying after the goods have been received. c) C paying at the time of receiving the good d) paying before the goods have been received. 4) Which of the following is not paid for in advance? a) A credit card bill. b) A magazine subscription. c) Mobile phone pay-as-you-go. d) Travel season ticket. 5) A book token is a pre-payment mechanism. Is this statement true or false? a) True b) False 6) A credit card is a pre-payment mechanism. Is this statement true or false? a) True b) False 7) A rail card is money. Is this statement true or false? a) True b) False 8) Which one of the following is ‘money’? Pick one a) Banknotes b) a Travelcard c) a cheque 9) A magazine offers a discount to readers who pay their monthly subscription via direct debit. Why would the magazine prefer their customers to pay in this way? a) The bank will pay the subscription whereas the customer might forget b) The customer cannot cancel the subscription c) The magazine gets commission from the bank for using the service 10) Hannah buys a travel insurance policy that costs £120 a year and has to be paid in advance. How can Hannah reduce the amount of time that passes between her advance payment and the delivery of the service? a) Ask if she can pay the £120 halfway through the year b) Insist on paying the £120 at the end of the year c) Pay by monthly instalments of £10 throughout the year 11) Customers who pay for goods and services in advance always get a discount. Is this statement true or false? a) True b) False 12) Zinedine is 18 and has saved up for a new mobile phone. He has decided to choose a pay-as-you-go system and pay for his calls in advance. What is the advantage to him of doing this rather than having an account and paying after he has made the calls? Zinedine is 18 and has saved up for a new mobile phone. He has decided to choose a pay-as-you-go system and pay for his calls in advance. What is the advantage to him of doing this rather than having an account and paying after he has made the calls?  a) He will control the amount he spends on his calls b) Legally he is too young to sign up to a phone contract c) The price of the phone will be less 13) When someone rents a flat, the landlord usually asks them for one month’s rent in advance plus one month’s rent as a deposit. Is this statement true or false? a) True b) False 14) Antigoni buys a ticket to take a bus to town. The bus breaks down and she has to walk instead. Which situation applies? a) Antigoni owes something to the bus company b) The bus company owes something to Antigoni c) There is nothing owing between Antigoni and the bus company 15) Why might a hotel ask guests to pay their bill when they check in and not when they leave? a) To avoid bad debts b) To create a good reputation c) To stop queues forming in the morning when people are checking out 16) Sometimes we pay for goods and services at the same time that we receive them. Which of the following is an example of paying for a book straightaway? Select one: Sometimes we pay for goods and services at the same time that we receive them. Which of the following is an example of paying for a book straightaway? Select one:  a) Buying it at the bookshop and paying in cash at the counter b) Ordering it from a book catalogue and sending a cheque with the order c) Purchasing it from on the internet and paying by credit card

Unit 2 Topic 4 PrePayment (Open Box)

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