Why is it important for a rainy-day fund to be highly liquid? A. Funds need to earn a high rate of return. B. Funds need to be easily accessible. C. Funds need to be stored in a safe place. D. Funds need to be invested to achieve long-term savings goals.

Question

Mathematics

Oswaldo Mclean

5 November, 13:22

Why is it important for a rainy-day fund to be highly liquid? A. Funds need to earn a high rate of return. B. Funds need to be easily accessible. C. Funds need to be stored in a safe place. D. Funds need to be invested to achieve long-term savings goals.

+3

Answers (2)

Know the Answer?

Aggie · Answer 1

Answer: B. Funds need to be easily accessible

This is so you can access it easily without paying a penalty

Nick · Answer 2

B. Funds need to be easily accessible.

Step-by-step explanation:

It is important for a rainy-day fund to be highly liquid because - Funds need to be easily accessible.

These funds should be easily accessible, without any penalty. Like - a high yield bank account, money market accounts etc.