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. Even though a regular savings account is sultable when you are saving your beg

ID: 2816365 • Letter: #

Question

. Even though a regular savings account is sultable when you are saving your beginner emergency fund, why is a money market mutual fund a better place t keep your completed emergency fund? OA saving account is too easy to access o A money market mutual fund is accessible and generally has check-writing privileges If needed O All of the above 6. A sinking fund approach means: Saving and paying cash Buying with credit, but paying it off in full before the interest is due Buying with credit, getting a low interest rate, and sinking further into debt 90-days-same-as-cash 7. A sinking fund makes money grow over time by adding interest to previous interest earned. | DESCRIPTION

Explanation / Answer

Hello Sir/ Mam

Q - 5 - THE CORRECT ANSWER IS OPTION D : ALL OF THE ABOVE

Money Market Mutual Funds pay higher interest rate than savings account and generally have no limit on writing checks. Savings account is too easy to access.

Q - 6 - THE CORRECT ANSWER IS OPTION A : SAVING AND PAYING CASH

Sinking Fund approach basically means the saving of excess revenues by the entity in the Sinking Fund A/c and then paying off liability in cash.

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