Which choice or choices best describes the purpose of an emergency fund?

A. An emergency fund prepares you for unexpected expenses.

B. An emergency fund keeps you from borrowing money from friends and family.

C. An emergency fund removes the worry about expenses not in the budget.

D. All of the above are good reasons to have an emergency fund.

Answer

The correct answer is D. All of the above are good reasons to have an emergency fund.

A. An emergency fund prepares you for unexpected expenses.

B. An emergency fund keeps you from borrowing money from friends and family.

C. An emergency fund removes the worry about expenses not in the budget.

Combining all of these reasons, we see that they collectively underscore the importance of having an emergency fund. Thus, option D encompasses all the valid points made in A, B, and C, making it the best choice.