MM Spring Final Review Part 1 True or False

A prospectus is a company's required yearly report to shareholders about the financial position of the company.

• True

• False

With installment credit, a consumer can charge to the account repeatedly up to a maximum limit.

• True

• False

The minimum payment required on a credit account is typically 10 to 15 percent of the outstanding balance.

• True

• False

Most lenders will not provide financing for the purchase of vacant land because of the speculative nature of the investment.

• True

• False

A discount broker has the same qualifications as a full-service broker.

• True

• False

The first step in creating a buying plan is to define your spending goal.

• True

• False

A CD is more liquid than either a savings account or a money market account.

• True

• False

Mutual funds are generally preferred by investors who have both the time and expertise to manage their own portfolios.

• True

• False

A lease is sometimes called a month-to-month agreement.

• True

• False

Investors can find information about licensed brokers on the FINRA website.

• True

• False