Question

Which is not a necessary activity in securing your basic needs? Managing cash for liquidity and emergencies Making purchase and credit decisions Investing to achieve long-term goals Selecting financial institutions for checking and savings accounts.

Answer 1

Securing your basic needs is of utmost importance if one needs to live with comfort and easily given the level of earning one earns.

Out of all the options mentioned, selecting financial institution for checking and savings account is not that of as importance as the other options. Spending resources and efforts in selecting the one that is the best is not that necessary until and unless they possess a financial risk.

Importance of managing cash for liquidity and emergencies cannot be underestimated as one must have liquidity to avoid any problematic situations and deal with such situations without any pressure. Making purchase and credit decisions are important so that we don't purchase goods out of our capacity and do not raise a level of debt beyond our paying capability. Saving and Investing for long term goals is important to attain future goals on time as per planning.