Final answer:
Rick can store his emergency fund in a money market fund, certificate of deposit, or basic savings account.
Step-by-step explanation:
Rick needs a place to store his emergency fund. One suitable option for him is a money market fund. Money market funds are a type of mutual fund that invests in low-risk, short-term securities, such as Treasury bills and commercial paper. They are known for their stability and liquidity, making them a good choice for an emergency fund.
Another option is a certificate of deposit (CD). CDs are time deposits offered by banks and credit unions. They typically offer higher interest rates than regular savings accounts and have a fixed maturity date, making them a good option if Rick doesn't need immediate access to his funds.
A basic savings account is a simpler option as well. While it may not offer as high of an interest rate as the other options, it provides easy access to the funds without any restrictions or penalties.
Learn more about Emergency fund storage options