If You Do Not Budget for Unexpected Expenses, You Will

question 80

Multiple Choice

If you do not budget for unexpected expenses, you will likely experience

• A)cash shortages.
• B)an increase in your emergency fund.
• C)an increase in assets.
• D)a decrease in liabilities.

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Definitions:

Treasury Bonds

Long-term government debt securities with a fixed interest rate, issued by the U.S. Treasury.

Relative Value Strategy

An investment strategy that seeks to identify and exploit differences in the prices of related financial instruments, such as stocks and bonds, for potential profit.

Net IRR

The Net Internal Rate of Return, a method used in capital budgeting to estimate the profitability of potential investments, considering net cash flows.