Test your knowledge of this lesson.

Question 1:
An emergency fund is:

A - Money set aside for unexpected expenses or events - True
B - Money set aside to meet retirement expenses - False
C - Money set aside to take advantage of opportunities - False

Note: An emergency fund is money set aside for unexpected expenses or events.

Question 2:
When setting financial goals they should be:

A - Broad, measurable and have a definite timetable - False
B - Conceptual, measurable, achievable and have a definite timetable - False
C - Written, specific, measurable, achievable and have a definite timetable - True

Note: When setting financial goals they should be written, specific, measurable, achievable and have a definite timetable.

Question 3:
Once you have set your specific goals, you should:

A - Arrange them by dollar value - False
B - Prioritize them - True
C - Arrange them by their timetable - False

Note: Once you have set your specific goals, you should prioritize them.