American_Bankers_Association
CTFA · Question #52
The amount of liquid funds will vary with your personal circumstances and comfort level. Another useful liquidity guideline is to have a reserve fund equal to:
The correct answer is B. 3 to 6 months of after tax income. See the full explanation below for the reasoning.
Investment Management
Question
The amount of liquid funds will vary with your personal circumstances and comfort level. Another useful liquidity guideline is to have a reserve fund equal to:
Options
- A3 to 6 months of income
- B3 to 6 months of after tax income
- C4 to 8 months of after tax income
- D6 to 12 months of income
How the community answered
(48 responses)- A8% (4)
- B71% (34)
- C17% (8)
- D4% (2)
Topics
#emergency fund#liquidity guidelines#reserve fund#personal finance
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