ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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cash flow
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income
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emergency fund
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opportunity cost
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Detailed explanation-1: -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-2: -A sudden illness or accident, unexpected job loss, or even a surprise home or car repair can devastate your family’s day-to-day cash flow if you aren’t prepared. While emergencies can’t always be avoided, having emergency savings can take some of the financial sting out of dealing with these unexpected events.
Detailed explanation-3: -An emergency fund is a bank account with money set aside to pay for large, unexpected expenses, such as: Unforeseen medical expenses. Home-appliance repair or replacement. Major car fixes.
Detailed explanation-4: -Housing. Food. Health care (including insurance). Utilities. Transportation. Personal expenses. Debt.