n NISM Certifications
NSM General NISM
Medium

Scenario: A client concerned about emergency expenses wishes to invest. What should a distributor recommend?

Practice question from B9-S3 Financial Planning — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Maintain adequate emergency fund, invest excess in liquid funds

    Correct answer

  2. B

    Invest all savings in equity funds

  3. C

    Use entire savings for long-term retirement funds

  4. D

    Avoid any investments altogether

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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