Barry Ferrell has a monthly income of $2,500.His monthly expenses are $2,000.What amount is recommended for someone in Barry's situation to set aside to establish an emergency fund?
A) $2,000
B) $2,500
C) $7,500
D) $6,000
E) $1,500

Question

Quizplus · Accepted Answer

Financial experts suggest having 3-6 months' worth of living expenses saved in an emergency fund. In this case, Barry's monthly expenses are $2,000, so he should aim to save between $6,000 and $12,000. Option D is the closest to this recommended range, so it is the best choice.

Barry Ferrell Has a Monthly Income of $2,500