Practice Quiz

Financial Planner

Category - General Principles of Financial Planning

Start a Study Session Sign up for Question of the Day
What is the usual recommendation for the size of an emergency fund?
  1. $1,000
  2. 3-6 months’ worth of expenses
  3. $5,000
  4. 12-18 months’ worth of expenses
Explanation
Answer: B - While some individuals or families should or prefer to use a different goal for an emergency fund, the general recommendation is 3-6 months’ worth of expenses. This should cover most expenses in the case of an emergency. Of course, the larger the emergency fund, the better an individual can cover emergencies.
Was this helpful? Upvote!
Login to contribute your own answer or details
Start a Study Session Sign up for Question of the Day

Top questions

Related questions

Most popular on PracticeQuiz