Which statement about Americans' emergency funds is supported by the material?

Which statement about Americans' emergency funds is supported by the material?

• A. Most Americans have $400 saved
• B. The majority do not have $400 to cover an emergency expense and live paycheck to paycheck
• C. Most Americans have 3-6 months of expenses saved
• D. Most Americans rely on credit cards for emergencies

Answer: (B)

Having an emergency fund provides a financial cushion to cover unexpected costs without turning to debt. The material shows that a large share of Americans don’t have $400 saved for emergencies and often live paycheck to paycheck. That combination means many would struggle to handle a sudden expense and might rely on credit cards or other debt instead of having money set aside. This is why the statement about most Americans not having $400 saved and living paycheck to paycheck is the one supported by the material. The other ideas—having $400 saved, having 3–6 months of expenses saved, or relying on credit cards for emergencies—aren’t what the material indicates.

Having an emergency fund provides a financial cushion to cover unexpected costs without turning to debt. The material shows that a large share of Americans don’t have $400 saved for emergencies and often live paycheck to paycheck. That combination means many would struggle to handle a sudden expense and might rely on credit cards or other debt instead of having money set aside. This is why the statement about most Americans not having $400 saved and living paycheck to paycheck is the one supported by the material. The other ideas—having $400 saved, having 3–6 months of expenses saved, or relying on credit cards for emergencies—aren’t what the material indicates.