A contingency reserve is money assigned to the project and allocated for identified risks for which contingent responses are developed.

a. True.

b. False.

The correct answer is letter "A": True.

Explanation:

Contingency reserves are funds that companies save to face economic hardships. In some cases, those negative situations can be expected while in some other cases they cannot - such as acts of God. Contingency plans come along with the contingency reserve to have an idea of what the company is going to do with the funds.