Foundations In Personal Finance Chapter 2 Test Study Questions Exam Questions (44 Terms) With Verified Definitions Updated 2024

Instead of borrowing money for large purchases, you should set money aside over time in what kind of fund? (So you can pay cash) {Ans: Sinking Fund}You should save for . . . {Ans: Purchases, wealth building and an emergency fund.}True or False: Americans typically maintain a vey high savings rate. {Ans: False}Using the sinking fund approach, how much do you have to save each month to buy a $4,800 car one year from now? {Ans: $400}True or False: Your income level greatly affects your savings habits. {Ans: False}Money set aside and left alone for a "rainy day" is called . . . {Ans: an emergency fund}