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 get a higher return.