Financial Literacy Test

Money you earn from assets you have purchased or created. Generally recurring income.

• Wages

• Portfolio

• Passive

• Earned

The top salary you can make

• Human Capital

• Productivity

• Career

• Earning Potential

The quality, state, or fact of being able to generate, create, enhance, or bring forth goods and services.

• Human capital

• Productivity

• Earning potential

• Opportunity cost

Meredith received a refund of $500. Meredith needs a new laptop, but she would also like to go on vacation to the Bahamas. If Meredith purchases the laptop, what is her opportunity cost?

• The Bahamas vacation

• The laptop

• The $500

Income generated by selling an investment at a higher price than you paid for it.

• Earned

• Passive

• Portfolio

• Wages

Education, training and experience are some factors that influence earned income.

• False

• True

Lillian purchased a house for $150,000. Lillian and her husband invested $50,000 into home improvements. Lillian and her husband were able to sell the house for $200,000. Is this an example of portfolio income?

• No

• Yes

Randy earns $22 per hour. This is an example of:

• Wages

• Labor

• Salary

• Commission

Wages, salary and commission are examples of what type of income?

• Portfolio

• Earned

• Passive

James earns 10% of every sale he makes. This is an example of:

• Wages

• Salary

• Commission

• Assets