ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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To provide easily accessible money in case of an emergency.
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To increase wealth.
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To pay for monthly bills.
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To take advantage of unplanned purchase opportunities.
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Detailed explanation-1: -It can help individuals in case of an unprecedented event like job loss, medical expenses, critical illness, etc. “This way, a sufficient amount of funds should be kept aside, depending on the financial capacity of individuals and their family requirements, ” said Chatterjee.
Detailed explanation-2: -a. If an individual were to have an emergency, cash needs to be easily accessible. Savings accounts are more liquid than investments because a person can easily get money out of a savings account in a few minutes, while it is harder to get money out of an investment because they are not easily accessible.
Detailed explanation-3: -Which choice or choices best describes the purpose of an emergency fund?-An emergency fund prepares you for unexpected expenses.
Detailed explanation-4: -Set several smaller savings goals, rather than one large one. Set yourself up for success from the start. Start with small, regular contributions. Automate your savings. Don’t increase monthly spending or open new credit cards. Don’t over-save.