UNIT 1 Money and Income

What is considered income?

• Money received from employment, investments, or other sources

• Total expenses incurred in a month

• Borrowed money

• The amount spent on groceries

What is a common source of passive income?

• A regular job

• Interest from savings or rental income

• Money borrowed from friends

• Winning a lottery

Which of the following is an example of earned income?

• Dividend payments

• Salary from a job

• Selling an old car

• Receiving a gift

What is the term for income received after taxes and deductions?

• Gross income

• Disposable income

• Net income

• Total revenue

Which type of tax directly reduces an individual's income?

• Sales tax

• Income tax

• Property tax

• Value-added tax (VAT)

What does 'gross income' refer to?

• Income after expenses are subtracted

• Total income before taxes and deductions

• Income earned from side jobs

• Net profit from investments

What is a common way to increase your income?

• Decrease spending

• Invest in skill development to get a higher-paying job

• Spend all savings

• Avoid taxes

What is the term for money received regularly from investments?

• Capital

• Dividend income

• Tax refund

• Savings interest

What is the purpose of a budget in managing income?

• To track and plan spending

• To pay taxes

• To avoid earning too much

• To increase monthly expenses

Which of the following is NOT a form of income?

• Salary

• Dividends

• Loan repayment

• Interest from savings