Rashid's Monthly Expenses Are $4000 and He Expects That His

Multiple Choice

Rashid's monthly expenses are $4000 and he expects that his cash flow will always be sufficient to cover his expenses.How much should he ideally have in his emergency fund?

A) $12 000 using a combination of liquid investments and access to credit
B) $24 000 because it is always best to be safe
C) None,but he needs a $24 000 limit on his credit card.
D) $12,000 invested in two- to three-year GICs to earn a higher return