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Questions and Answers
What is the recommended amount of money to have in your emergency fund?
What is the recommended amount of money to have in your emergency fund?
- 7-9 months of fixed expenses
- 10-12 months of fixed expenses
- 1-2 months of fixed expenses
- 3-6 months of fixed expenses (correct)
What is the purpose of setting up 'overdraft protection' against your checking account or credit card?
What is the purpose of setting up 'overdraft protection' against your checking account or credit card?
- To earn competitive interest rates
- To prevent accidental check bouncing or withdrawal (correct)
- To avoid paying monthly fees
- To transact easily back-and-forth
What factors should be considered when determining the size of your emergency fund?
What factors should be considered when determining the size of your emergency fund?
- Number of years until retirement
- Amount of money saved in a 401k
- Number of credit cards owned
- Amount of liquid assets and fixed monthly expenses (correct)
Which of the following is a reason why some people prefer to have their savings account at a separate institution?
Which of the following is a reason why some people prefer to have their savings account at a separate institution?
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What is the benefit of using multiple accounts for different purposes?
What is the benefit of using multiple accounts for different purposes?
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When might CDs be a suitable option for saving?
When might CDs be a suitable option for saving?
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What is compound interest?
What is compound interest?
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