Which one of the following is not a recommended step individuals can use to weather a future financial crisis?
A)Establish a smaller than usual emergency fund
B)Consider converting investments to cash to preserve value
C)Notify lenders and credit card companies if you are unable to make payments
D)Reduce spending
E)Monitor the value of your investment and retirement accounts

Question

Quizplus · Accepted Answer

Establishing a smaller than usual emergency fund is not a recommended step, as it may not be sufficient to cover unexpected expenses during a financial crisis. It is recommended to have at least three to six months' worth of living expenses saved in an emergency fund. The other options, such as converting investments to cash, notifying lenders and credit card companies if unable to make payments, reducing spending, and monitoring the value of investment and retirement accounts, are all recommended steps to weather a financial crisis.

Which One of the Following Is Not a Recommended Step