ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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An emergency fund prepares you for unexpected expenses.
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An emergency fund keeps you from borrowing money from friends and family.
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An emergency fund removes the worry about expenses not in the budget.
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All of the above are good reasons to have an emergency fund.
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Detailed explanation-1: -Which choice or choices best describes the purpose of an emergency fund?-An emergency fund prepares you for unexpected expenses.
Detailed explanation-2: -An emergency fund is a cash reserve that’s specifically set aside for unplanned expenses or financial emergencies. Some common examples include car repairs, home repairs, medical bills, or a loss of income.
Detailed explanation-3: -Which choice or choices best describes the purpose of an emergency fund? An emergency fund prepares you for unexpected expenses, keeps you from borrowing money from friends and family, and removes the worry about expenses not in the budget.
Detailed explanation-4: -Q. Which of the following is NOT true about emergency funds? They are used for anything listed on the budget.
Detailed explanation-5: -The purpose of an emergency fund is to set money aside for unexpected financial emergencies and to provide a sense of financial security.