Precautionary savings are:
A)bequests.
B)savings for emergency situations.
C)loans from banks.
D)borrowing from credit cards.

Question

Quizplus · Accepted Answer

Precautionary savings are savings set aside for emergency situations or unexpected expenses, such as job loss, medical bills or car repairs. They are intended to provide a financial safety net and to avoid the need for more costly forms of borrowing, such as credit cards or loans from banks. Bequests are savings or assets left to beneficiaries after one's death, and are not necessarily intended for immediate use. Loans from banks and borrowing from credit cards are forms of debt, not savings.

Precautionary Savings Are