Choose wisely. There is only one correct answer to each question.
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1.
Treating your emergency fund as a bill to be paid gives it an element of priority.
True. Usually, we can find money to pay our bills.
2.
Why are stocks not considered a good parking place for emergency funds?
The stock market is volatile. It is possible for the price of your stock to be down when you need the money to cover an emergency expense.
3.
An advantage to using an automatic savings account to build an emergency fund is that it _______.
Saves you time and energy on finding money to save. Putting your saving on automatic can free up time for other financial planning.
4.
You will likely need an emergency fund most when you're not financially stable.
True. People who are just starting out are usually most in need of such a fund.
5.
Should you ever consider adding additional money to your emergency cash fund?
Yes. If you receive a bonus or raise at work, you should try to add money to your emergency cash fund, before you get used to spending the extra money. You might also consider looking for ways to trim your monthly spending, in order to add to your emergency cash fund.
