Question

Creating an emergency fund to pay for unexpected expenses is known as __________________________________.

a
Backdoor Budgeting
b
"Saving for a Rainy Day"
c
Opening a Mutual Fund
d
Placing your money in a CD

Answer 1

b

"Saving for a Rainy Day"

Step-by-step explanation:

"saving for rainy day' is a phrase that means putting some money a side for use in times of need. The phrase encourages people to save money for emergency use. As a rule of thumb, one should have at least three times their normal income as savings.