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A rainy day fund is money set aside for unexpected expenses or emergencies. Examples include saving a portion of your income each month, putting money into a separate savings account, or investing in a low-risk fund. These funds can be used to cover expenses like medical bills, car repairs, or unexpected job loss, helping to avoid financial stress and debt.

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What is financial institutions that lend the funds that savers provide to borrowers?

Financial Intermediaries.


What is the need of managing funds in a company?

The funds of the company are what keeps the company running. Thus if the funds available are not properly utilized (proper investments, everyday expenditure, etc.) the company could head to a financial crisis. Therefore it is essential to manage the funds properly to ensure the survival and competitiveness of the firm.


What are deposit taking financial intermediaries?

Deposit-taking financial intermediaries are institutions that accept deposits from individuals and businesses and use those funds to provide loans or invest in other financial activities. Examples include commercial banks, savings and loans associations, and credit unions. They play a crucial role in the financial system by facilitating savings, providing credit, and managing liquidity in the economy. These institutions are typically regulated to ensure the safety of depositors' funds.


What do you mean by financial market?

Financial markets transfer funds from those who have excess funds to those who need funds. I think you can mean also forex as a financial market.


What is 'funds for liq unsurre'?

"Funds for liquidity insurance" typically refers to financial resources set aside by institutions to ensure they can meet short-term obligations and manage unexpected financial demands. This can include reserves or lines of credit that provide a safety net during times of financial stress. Such funds are crucial for maintaining stability and confidence in financial markets, especially during periods of economic uncertainty.

Related Questions

What is financial institutions that lend the funds that savers provide to borrowers?

Financial Intermediaries.


What the purpose of financial management?

The purpose of financial management is to ensure that money is managed in the right manner. This includes having a budget and planning for how the funds received will be utilized.


What is the need of managing funds in a company?

The funds of the company are what keeps the company running. Thus if the funds available are not properly utilized (proper investments, everyday expenditure, etc.) the company could head to a financial crisis. Therefore it is essential to manage the funds properly to ensure the survival and competitiveness of the firm.


What are deposit taking financial intermediaries?

Deposit-taking financial intermediaries are institutions that accept deposits from individuals and businesses and use those funds to provide loans or invest in other financial activities. Examples include commercial banks, savings and loans associations, and credit unions. They play a crucial role in the financial system by facilitating savings, providing credit, and managing liquidity in the economy. These institutions are typically regulated to ensure the safety of depositors' funds.


What is One goal of the constitution is to provide for the common?

what are raising funds through taxation and borrowing examples of


What services does Ivy Funds provide?

Ivy Funds is a web site that allows registered members to purchase and make transactions involving assets and overall financial support. They can see the income and balance for specific financial businesses.


What do you mean by financial market?

Financial markets transfer funds from those who have excess funds to those who need funds. I think you can mean also forex as a financial market.


What is 'funds for liq unsurre'?

"Funds for liquidity insurance" typically refers to financial resources set aside by institutions to ensure they can meet short-term obligations and manage unexpected financial demands. This can include reserves or lines of credit that provide a safety net during times of financial stress. Such funds are crucial for maintaining stability and confidence in financial markets, especially during periods of economic uncertainty.


Can you provide some examples of investment products?

Some examples of investment products include stocks, bonds, mutual funds, real estate, and certificates of deposit.


Example of financial intermediaries?

brokers, creditrating agencies, dealers, investment banks, insurance companies, pension funds, savings banks, closed and open ended mutual funds, private banks, venture capitalists, finance houses and commercial banks. these are all examples of financial intermediaries.


Explain the role of financial intermediaries in the flow funds through the three sector economy?

In a three-sector economy consisting of business, households, and government, financial intermediaries such as commercial banks, mutual saving banks, insurance companies, mutual funds, pension funds, and credit unions provide the mechanism for reallocating funds from one surplus sector to a deficit sector. These institutions indirectly invest excess funds in areas of the economy where funds are needed.


Mutual funds provide stability to share prices safety to investors and resources to the prospective entrepreneurs Critically examine this statement with suitable examples?

Mutual funds are platforms that pool in a set of investors money and invest in stocks and securities for mutual benefit of all the investors and the fund as a whole. Mutual funds are of various types such as debt funds, equity funds, mix funds etc. Mutual funds usually invest in a variety of stocks and the same is difficult to be achieved by an individual investor. Investing in a variety of stocks provides stability of prices, safety of returns majorly due to diversification. Also, mutual funds are governed by laws and regulations that assures the investors of safety and security. Since, mutual funds are able to pool in funds from a large group of investors they provide financial resources to a companies and entrepreneurs.