Your friend has prepared his monthly budget and asks you if he has overlooked anything in this planning. which of the following questions points out his most serious omission? a. what if your income from stocks is lost? b. what if you need to go to the doctor? c. what if the electric bill increases? d. what if you need to replace the furnace?

It depends on what the budget is and how much of the "unexpected" expenses will be covered by insurance or amounts already in the budget.

Insurance coverage may be available for furnace relplacement and for medical expenses. Utility increases are generally on the order of a few percent--particularly if a budget plan is being used that smooths bills over the year.

Loss of income may be another matter, especially if it comprises a substantial portion of the budget. On the other hand, since stock dividends or appreciation are often unpredictable, the budget may allocate those amounts to purely discretionary expenses--meaning loss of that income may have little impact.

My guess as to the answer considered "correct" is ...

... a. What if your income from stocks is lost?

I believe a good case can be made for any of the choices. Furnace replacement can run several thousand dollars, but is usually an amount that appears as a "long-term home expense" item in the budget, along with exterior painting, roof replacement, sewer or water line replacement, paving, landscape renovation, and other such expenses.

Medical bills can run many thousands of dollars, and can be quite unexpected. Usually insurance covers a lot of it, and the rest can be paid over time, so the impact on a monthly budget can often be manageable, but may be dramatic.

Utility bills can change dramatically if there are unexpected issues or changes in usage due to weather or added household members.

Loss of income can be rather serious, if it is the basis for the budget in the first place. An emergency fund is generally advised to cover such circumstances, but income from stocks may suffere long-term problems that outlive an emergency fund.

y=mx+b

step-by-step explanation:

m is slope, b is y-intercept