International Baccalaureate (IB) Practice Exam

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Study International Baccalaureate Exams with tailored multiple choice quizzes and flashcards. Gain confidence with explanations and hints for every question. Ace your exams!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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At your age, a fully funded emergency fund should be:

$500
$5,000
$1,000
$100

The correct answer is: $500

A fully funded emergency fund is typically considered to be a financial cushion that can cover unexpected expenses, such as medical emergencies or car repairs. While the specific amount can vary based on individual circumstances, a commonly recommended guideline is to have an emergency fund that can cover three to six months' worth of essential living expenses. In the context of the choices provided, the correct answer reflects a lower threshold for an emergency fund that might be more attainable for someone at a younger age or possibly with lower expenses. Starting with $500 is typically regarded as a reasonable initial goal, allowing individuals to cover small emergencies while they work towards a more substantial amount in their savings. This amount can be more manageable for someone just starting out in their financial journey, rather than the higher amounts suggested in other options, which may be more suited for individuals with more financial responsibilities or expenses. As one progresses in their financial stability and as expenses grow, the goal can then shift to saving more.