Question

1. A part of your emergency fund should include _____. (1 point)
cash
credit cards
real estate
savings bonds

2. An emergency can be _____. (1 point)
an unexpected beach trip
designer clothes that are only available for a short time
a natural disaster
a late credit card payment

3. Your fixed expenses are $1,500.45/month. Your emergency fund has 4 month’s worth of
coverage. You invest half in a savings account with an interest rate of 3.15% APR and the
other half in a 45­day CD with an interest rate of 4.65% APR. How much is your total interest
in 45 days?
(1 point)
$

4. If you had invested only 1 month’s worth of the emergency fund in the saving account at a
3.15% APR and the remainder in the 45­day CD at a 4.65% APR, what is the difference in the
interest earned in 45 days when compared with question #3?
(1 point)
$

Answer 1

1. A- cash

2. C - a natural disaster

3. $28.85

4. $21.64

Answer 2

Everything in the above answer is correct except for number four. The correct answer is $ 2.79