Which of the following practices will help in dealing with unexpected negative "financial shocks"?
A) Purchasing low-utility products
B) Accumulating debt
C) Acquiring assets with low financial value
D) Setting up an emergency fund
E) Planning for retirement

Question

Quizplus · Accepted Answer

Setting up an emergency fund is the best practice to deal with unexpected negative financial shocks as it provides a cushion to cover unexpected expenses or loss of income without going into debt or selling assets. Purchasing low-utility products, accumulating debt, and acquiring assets with low financial value do not address the immediate need for funds in case of financial shock. Planning for retirement is important but does not necessarily provide immediate financial relief.

Which of the Following Practices Will Help in Dealing with Unexpected