which option describes an emergency fund?\n(1 point)\n○ low-risk investments in case something bad…

which option describes an emergency fund?\n(1 point)\n○ low-risk investments in case something bad happens.\n○ a quantity of money set aside in case something bad happens.\n○ a quantity of money set aside for an expense that you anticipate, such as buying a car or a house.\n○ a mutual fund that gives you an annual return to grow for retirement.

which option describes an emergency fund?\n(1 point)\n○ low-risk investments in case something bad happens.\n○ a quantity of money set aside in case something bad happens.\n○ a quantity of money set aside for an expense that you anticipate, such as buying a car or a house.\n○ a mutual fund that gives you an annual return to grow for retirement.

Answer

Brief Explanations:

An emergency fund is specifically liquid money reserved for unforeseen negative events (emergencies). Low-risk investments are not the core definition (emergency funds are typically cash/cash equivalents, not investments). Funds for anticipated large purchases are sinking funds, not emergency funds. Retirement mutual funds are for long-term retirement goals, not emergencies.

Answer:

A quantity of money set aside in case something bad happens.