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

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

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

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

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

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

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

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

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

With dollar-cost averaging, a person invests more or less money depending on market conditions.

Loan refinancing usually results in lower interest costs.

To determine the finance charge on a credit account, you would include both interest and fees charged on the account.

When a stock split occurs, the number of shares decreases while the total value remains the same.

A credit card's annual percentage rate (APR) is always a fixed interest rate.

If you finance the purchase of a home with a fixed-rate mortgage, you will not have the option to refinance the loan later.

Monthly mortgage payments or rent payments should not be included when applying the 20/10 Rule.

A student loan is an example of a deferred-payment loan, because payments are postponed until the student has completed his or her education.

The Truth in Lending Act requires that consumers be given a grace period of 10 days to change their minds about a credit agreement.

The over-the-counter (OTC) market is a network of brokers who buy and sell securities of corporations that are not listed on a securities exchange

A call option is the right to buy shares of stock or a commodity at a set price by a certain expiration date.

The face value of a bond is the amount the bondholder will be repaid on the maturity date.

Diversification involves holding a variety of investments for the purpose of reducing overall risk.

Generally, you should plan to set aside three to six months' net pay in an emergency fund.

Money withdrawn from an IRA before age 59 1/2 will be subject to a 10% early withdrawal penalty.

Chapter 13 bankruptcy is also known as straight bankruptcy or liquidation bankruptcy because it involves forfeiture of an individual's assets in exchange for discharging the individual's debt.

In order to obtain the highest possible return on investment, you should look for investments with the lowest risk.

The purpose of Chapter 11 bankruptcy is to make sure that the business can remain viable after the bankruptcy proceeding.

Low income is the most common symptom of financial irresponsibility.

Title loans generally have low interest rates because lenders hold the titles to borrowers' vehicles as collateral.

With binding arbitration, the parties must agree in advance that they will accept the arbitrator's decision as final.

A bull market is characterized by a prolonged period of rising stock prices and general feeling of investor optimism.

Debt consolidation results in a single payment on the debts that were consolidated.

In a defined-contribution plan, employees are promised a specific amount of benefits at retirement.

A car loan is said to be upside down if the car is worth more than the loan balance.

Tax-exempt investments are good choices for lower income people because their tax rates are low.

Paying for a purchase with a credit card, rather than cash or a debit card, gives the consumer more leverage in the event of a dispute.

Saving money is referred to as a pay-yourself-first strategy.

A market order is a request to sell a stock when the market value of the stock reaches a certain price.

If an eviction results from a judge's ruling in court, the eviction will be reported to credit bureaus, potentially harming the tenant's credit score.