Select the correct answer.

Which statement correctly identifies a difference between an emergency fund and a rainy-day fund?

A.
An emergency fund is larger and should have a balance equal to three to six months of income.
B.
A rainy-day fund is larger and should have a balance equal to three to six months of income.
C.
An emergency fund is smaller and used for minor unexpected expenses, such as replacing an appliance.
D.
A rainy-day fund is smaller and used for expenses that are planned.