Question

Before beginning to invest and build your financial capital, you should make sure you have adequate...

Before beginning to invest and build your financial capital, you should make sure you have adequate

emergency funds in cash or savings accounts only.
insurance coverage and emergency funds in cash or savings accounts.
insurance coverage, real estate, and emergency funds in cash or savings accounts.
insurance coverage only.
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Option B is correct

Before beginning to invest and build your financial capital, you should make sure you have adequate emergency funds in insurance coverage and emergency funds in cash or savings accounts. The cash or money in savings account can be used immediatly during the emergency, while insurance coverage takes care of big expenses such as medical emergencies.

Option A is incorrect because we should also have insurance coverage to take care of bigger emergency expenses such as hospitalization expenses along with money in the form of cash and savings account.

Option C is incorrect because the real estate assets are very illiquid, so they cannot be quickly converted to cash to meet emergency situations.

Option D is incorrect because we should also have emergency funds in cash or savings accounts to take care of small emergency needs

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Fill in the missing pieces to the balance sheet below for Capital One Financial. Make sure...
Fill in the missing pieces to the balance sheet below for Capital One Financial. Make sure to show your work in the available space. Assets Liabilities & Owners’ Equity Cash $500,000 Accounts Payable_____ Accounts Receivable______ Notes Payable $600,000 Inventory $750,000 Accruals $400,000 Total Current Assets $1,800,000 Total Current Liabilities______ Net Plant & Equip______ Long-Term Debt $4,000,000 Total Debt $5,000,000 Retained Earnings $1,500,000 Stockholders’ Equity_____ Total Equity_____ Total Assets_____ Total Liabilities & Owners’ Equity $8,000,000
You have excess cash. You anticipate that you will need to have 6 months’ worth of...
You have excess cash. You anticipate that you will need to have 6 months’ worth of expense covered, in case of emergencies. You want to make sure that you can have access to your cash, but also gain interest as well, throughout the 6 months. Your expenses are $2300 per month. You have $20,000 in cash. You want to put it in various accounts or funds for: 1 month, 3 months, 6 months. The remaining amounts you want to have...
How much should you invest each month in order to have $500,000 if your rate of...
How much should you invest each month in order to have $500,000 if your rate of return is 7.3% compounded monthly and you want to achieve your goal in 40 years? How much interest will you earn? How much should you invest each month in order to have $500,000 if you want to achieve your goal in 20 years? If you deposit the amount you need to achieve your goal in 20 years, how much will your savings be worth...
How much should you invest each month in order to have $400,000 if your rate of...
How much should you invest each month in order to have $400,000 if your rate of return is 2.6% compounded monthly and you want to achieve your goal in 40 years? $ How much interest will you earn? $ How much should you invest each month in order to have $400,000 if you want to achieve your goal in 20 years? $ If you deposit the amount you need to achieve your goal in 20 years, how much will your...
A) How much should you invest each month in order to have $700,000 if your rate...
A) How much should you invest each month in order to have $700,000 if your rate of return is 2.1% compounded monthly and you want to achieve your goal in 40 years? B) How much interest will you earn? C) How much should you invest each month in order to have $700,000 if you want to achieve your goal in 20 years? D) If you deposit the amount you need to achieve your goal in 20 years, how much will...
You just met with a new financial advisor who told you that “you should invest in...
You just met with a new financial advisor who told you that “you should invest in long‐term because their interest rates are over 20% while short‐term bonds only have a yield of 15%”. Is the financial adviser necessarily right?
Personal Financial Plan for “Jack and Jill” Jack and Jill are married and a middle-aged couple....
Personal Financial Plan for “Jack and Jill” Jack and Jill are married and a middle-aged couple. In order to achieve their goals, they hope to retire and must, therefore, ensure they have enough savings to cater for their needs in their golden days. As a married couple, they have made several investments and are not sure whether their insurance coverage is adequate. They are not sure whether they have enough financial resources to last them for the rest of their...
Suppose you inherit $300,000 today and you decide to invest that money in a money market...
Suppose you inherit $300,000 today and you decide to invest that money in a money market account. To build up your savings for your retirement, you decide to make yearly deposits of $20,000 for 10 years into that same account. However, you can only start your yearly deposits two years from now. What is the NPV of this cash flow, assuming a return of 5% a year?
Assume you inherit $300,000 today and you decide to invest that money in a money market...
Assume you inherit $300,000 today and you decide to invest that money in a money market account. To build up your savings for your retirement, you decide to make yearly deposits of $20,000 for 10 years into that same account. However, you can only start your yearly deposits two years from now. What is the NPV of this cash flow, assuming a return of 5% a year?
You are trying to calculate how much money you should have at retirement. On your 57...
You are trying to calculate how much money you should have at retirement. On your 57 th birthday you will retire and immediately make your first withdrawal of ?$4166.67. You plan to make 24 such withdrawals each year. You plan to continue withdrawing at that level and frequency until you are 72 years old. ? (Assume beginning of period withdrawals with the first withdrawal on your retirement date and no withdrawal on your final? birthday.) During retirement your savings will...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT