International Baccalaureate (IB) Practice Exam 2025 – Complete Study Resource

Question: 1 / 400

What does maintaining an emergency fund help with?

Coping with unexpected financial crises.

Maintaining an emergency fund primarily serves the purpose of providing financial security during unexpected situations. This fund acts as a safety net, allowing individuals to manage unforeseen expenses such as medical emergencies, home repairs, or job loss without resorting to high-interest debt or other financial strains. By having readily accessible cash set aside, individuals can navigate financial crises more easily and maintain stability in their overall financial planning.

While investing in stocks, paying off student loans, or buying a new car may be important financial goals, these activities do not specifically address the immediate need to respond to sudden expenses that an emergency fund is designed for. Thus, the key advantage of having an emergency fund is its role in fostering resilience against unpredictable financial challenges.

Get further explanation with Examzify DeepDiveBeta

Investing in stocks.

Paying off student loans.

Buying a new car.

Next Question

Report this question

Download International Baccalaureate (IB) Practice Exam PDF Study Guide
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy