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Basics Beginner: Financing a Major Purchase

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1.
Most experts recommend that an emergency fund have how many months worth of living expenses in it?
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Three to six. This is just a recommendation, however.
2.
If you want to save for a big purchase over the long term, which of the following options is likely to fluctuate in value the least?
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Certificates of deposit. As a general rule, certificates of deposit are the least likely of these to fluctuate in value.
3.
Budgeting for a major purchase has many advantages; one of them is that _______.
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You may be able to avoid the use of debt. Avoiding debt can save you a lot of money, as well as give you time to think over the purchase.
4.
A home equity line of credit is typically a revolving line of credit.
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True. HELOCs, as they are called, can be used to finance large purchases.
5.
A major purchase is a _______ expense.
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Variable. It is variable because you dont normally buy it on a regular basis.