BUSN 380 Course Great Wisdom / tutorialrank.com BUSN 380 Course Great Wisdom / tutorialrank.com | Page 57

Question 2. 2. (TCO 5) Eric Peltz earns $70,000 a year. His monthly
expenses total $3,600. What is the minimum amount of money that
Mr. Peltz should set aside in an emergency fund?
$1,800
$3,600
$10,800
$21,600
$35,000

Question 3. 3. (TCO 5) You currently hold a $1,000 corporate bond;
however, if interest rates in the overall economy increase, which of
the following is most likely to be the market value of this bond?
$900
$1,100
$1,000
The value of the bond will not change.
It is impossible to determine whether the bond's value will increase or
decrease.

Question 4. 4. (TCO 5) Which of the following individuals should
have the highest tolerance for risk?