ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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You may not be able to find another job quickly if you lost yours.
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You have a large monthly car payment.
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You have mostly discretionary expenses.
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Your income is fairly predictable.
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Detailed explanation-1: -Which of the following is a good reason to have a financial reserve that’s larger than normal? You would not be able to find another job quickly if you lost yours. You have a large monthly car payment. You have mostly discretionary expenses.
Detailed explanation-2: -Savings accounts offer easy access to your money in the event of an emergency, while your money is in a savings account, it can earn interest, allowing your money to grow, and finally keeping your money in a savings account means that your money is safe.
Detailed explanation-3: -Save for a Vacation, Car, or Other Big Purchase Saving up for a big purchase beforehand means you won’t pay extra in finance costs such as interest and fees, the way you would if you put these purchases on credit. You might save up for a new car, paying for it all at once instead of taking out a car loan.
Detailed explanation-4: -Saving can give you freedom. Saving provides financial security. Saving means you can take calculated risks. 22-Feb-2023