Question

In: Finance

Which of the following statement about emergency funds is NOT correct? A. Emergency funds amount varies...

Which of the following statement about emergency funds is NOT correct?

A.

Emergency funds amount varies with income sources

B.

Emergency funds amount varies with the potential for financial emergencies

C.

Emergency funds amount varies with the stability of income

D.

Emergency funds decision is independent from insurance coverage decision

Solutions

Expert Solution

Option 4 is the Correct

Emergency funds is the funds that an individual kept aside for any unforseen circumstances that may arise in future and for any goals that he has set. For example: Purchasing a Car, Payment due to soneone.

Emergency funds help the individulal to reduces the cost of finance, Meet the obligations and improve the financial stability. Emergency funds amount do varies with inocme sources and stability of funds, If the Income sources are stable then he will deposit more money while Instability in income sources will lead to instability in emergency funds also.

Emergency funds decision is not independent from insurance coverage decision. It depends on the insurace coverage as if the insurance coverage is more than the individual might save less money in emergency funds because of the assurance from the insurance while less insurance coverage will lead to more funds in insurance coverage. So, Option 4 should be the correct answer.


Related Solutions

Which of the following is a correct statement about a concave mirror?
Which of the following is a correct statement about a concave mirror? All of the other choices are not correct.A light ray through the center of curvature ofthe mirror is reflected parallel to theprincipal axisA light ray directed to the center of the mirrorreturns in its own path.A light ray parallel to the principal axis isreflected back through the center of curvature.A light ray through the focal point isreflected parallel to the principal axis.When an object is placed beyond the center...
Which statement about sponges is correct?
1.Which statement about sponges is correct?Sponges have two germ layers, which give rise to well-organized tissues.Sponges can only reproduce asexually by fragmentation or budding.Most sponges have bilateral symmetry.Sponges belong to the group of invertebrates known as cnidarians.Sponges are filter feeders.2.  Which are invertebrate chordates?tunicates onlylancelets onlyjawless fishes onlytunicates and lancelets but not jawless fishestunicates, lancelets, and jawless fishes
1. Which of the following is correct about the income statement: * It is an equation...
1. Which of the following is correct about the income statement: * It is an equation used by financial analysts It is an equation used by politicians It is a report that shows the cash inflows and cash outflows of the company It is a report that shows the revenues and expenses of the company None of the above 2. Which of the following is correct about cash flows statement: * It includes only the cash outflows It shows the...
1. Which of the following is correct about the income statement: * It is an equation...
1. Which of the following is correct about the income statement: * It is an equation used by financial analysts It is an equation used by politicians It is a report that shows the cash inflows and cash outflows of the company It is a report that shows the revenues and expenses of the company None of the above 2. Which of the following is correct about cash flows statement: * It includes only the cash outflows It shows the...
1 - Which of the following is not a correct statement about competitive advantage? a. If...
1 - Which of the following is not a correct statement about competitive advantage? a. If France produces 50 bottles of wine per labor hour while Germany 5, France has absolute advantage over Germany in wine. b. If France produces 25 bottles of beer per labor hour while Germany 20, France has comparative advantage over Germany in beer. c. If France produces 50 bottles of wine per labor hour while Germany 5 and beer production is as in “b”, France...
Subject - DataBase / MySQL * Which of the following is not correct about the statement...
Subject - DataBase / MySQL * Which of the following is not correct about the statement provided? SELECT Customer#, FirstName, LastName FROM Customers C JOIN Orders O ON C.Customer# = O.Customer# JOIN OrderItems OI ON O.Order# = OI.Order# JOIN Books B ON OI.ISBN = B.ISBN WHERE Category = 'Fitness' AND Category = 'Computers'; Select one: a. Joins the OrderItems table to the Books table using the field ISBN b. All of these are correct c. Joins the Customer table to...
which of the following statements about the loanable funds market is (are) correct? (x) When the...
which of the following statements about the loanable funds market is (are) correct? (x) When the supply of loanable funds shifts to the right then the equilibrium real interest rate decreases and the equilibrium quantity of loanable funds decreases. (y) When the demand for loanable funds shifts to the right then the equilibrium real interest rate increases and the equilibrium quantity of loanable funds increases. (z) If the demand for loanable funds shifts to the right and the supply of...
Choose the correct answer. 1.Which of the following statements about the income statement is correct? The...
Choose the correct answer. 1.Which of the following statements about the income statement is correct? The income statement covers a specific point in time. The elements of the income statement include income from operations and distributions to owners. The income statement summarizes the results of a company's operations for a period. All of the above. 2. A company's balance sheet shows the value of assets, liabilities, and stockholders' equity: Over a period of time for any given period of time...
Question 3 (1 point)Which of the following statements is not correct about Exchangetraded funds...
  Which of the following statements is not correct about Exchange traded funds (ETFs)?   a) ETFs limit diversification benefits   b) ETFs are funds an investor can buy or sell on a stock exchange   c) ETFs are open-ended   d) ETFs represent shares of ownership   The spot and 180day forward rates for the euro are $1.3310 and $1.3402, respectively. The euro is said to be selling at a forward   a) discount of 1.4%   b) premium...
Which of the following statement is correct?
Which of the following statement is correct?DJIA is not value weightedNone of the aboveIf the Efficient Markets Hypothesis is NOT true, all stocks are correctly pricedCommon shares is not a financial assetCommon shares is not a financial assetWhich of the following statement is NOT correct?None of the abovePrice Impact is not a trading cost for investors when trading common stocksThere is a decrease in number of IPOs after 200012b-1 Fee is not a trading cost for investors when trading common...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT