Emergency funds MCQs
- What is an emergency fund?
- How much money should you have in your emergency fund?
- What type of account should you use for your emergency fund?
- Why is it important to have an emergency fund?
- How should you calculate your emergency fund?
- How often should you review and adjust your emergency fund?
- What are some examples of unexpected expenses?
- What is the purpose of an emergency fund?
- Can you use credit cards as an emergency fund?
- What is the opportunity cost of not having an emergency fund?
- How can you build your emergency fund quickly?
- What should you do if you have to use your emergency fund?
- What is the recommended location for storing your emergency fund?
- What should you do if your expenses increase or decrease?
- Should you use your emergency fund to pay off debt?
Money set aside for planned expenses
Money invested in stocks and bonds
Money set aside for unexpected expenses
3 months' worth of expenses
6 months' worth of expenses
1 month's worth of expenses
Checking account
Savings account
Retirement account
To prepare for unexpected expenses
To fund vacations and luxury expenses
To save for retirement
Based on your income
Based on your debt
Based on your expenses
Every year
Every 6 months
Every 3 months
Car repairs, medical bills, and home repairs
Vacations, gifts, and hobbies
Food, clothing, and entertainment
To pay for everyday expenses
To cover unexpected expenses
To invest in the stock market
Yes, but it's not recommended because of high interest rates
No, credit cards are not a reliable source of emergency funds
Yes, as long as you pay off the balance in full each month
Not being able to afford everyday expenses
Having to pay higher interest rates on loans
Having to rely on credit cards or loans for unexpected expenses
Take out a loan
Use credit cards
Sell items you don't need
Ignore it and hope you won't need it again
Immediately start rebuilding it
Cut back on expenses to avoid using it again
Under your mattress
In a checking account with your regular funds
In a savings account at a different bank
Adjust your emergency fund accordingly
Leave your emergency fund the same
Invest your emergency fund in the stock market
Yes, if you have high-interest debt
It depends on the amount of debt and your other financial goals
No, it's better to focus on building your emergency fund