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. |
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
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