What term describes buying goods by paying over time in installments, which led to debt?

• A. Buying on Credit
• B. Cash on Delivery
• C. Bartering
• D. Layaway

Answer: (A)

Buying on credit means you receive goods now and pay for them later in installments, which creates debt for the borrower. This practice became widespread in American history as stores offered installment plans that let people buy expensive items by paying over time, often with interest attached. The key idea is that you’re borrowing money from a lender to make the purchase and agreeing to repay it over a set period.

Cash on delivery means you pay when the item arrives, not over time. Bartering is trading goods directly without money. Layaway lets you reserve an item and pay in installments, but you don’t get the item until you’ve fully paid, so you aren’t borrowing money to buy it in the same way.