PERSONAL FINANCE B

Which of the following is NOT an example of Active Income?

• Salaries

• Gratuity

• Tips

• Stocks

• Wages

Which of the following is an example of Active Income? Choose the correct option.

• Rental income

• Dividends from stocks

• Wages and salaries

• Interest from investments

What is the definition of Passive Income?

• Passive income is money earned with little to no continuous effort once the initial work is complete.

• Passive income is money earned only from a full-time job.

• Passive income is money that requires daily active management.

• Passive income is money earned exclusively from selling products.

Which of the following is NOT an example of Passive Income? Choose the correct option.

• Royalties

• Dividends from stocks

• Wages

• Rental income

What are the 3 Main Criteria for determining income?

• Supply & Demand, Education & Training, Influence of Unions

• Taxes, Wages, Salaries

• Credit, Loans, Interest

• Savings, Investments, Loans

What is a Progressive Tax?

• Increases as income increases

• A consumption tax

• Tax on certain goods

• Tax paid on the value of property

• Tax is the same for everybody

Which of the following is an example of a regressive tax? Choose the correct option.

• Income tax

• Sales tax

• Property tax

• Fair tax

What is the main function of banks?

• The main function of banks is to deposit money and loan money.

• The main function of banks is to manufacture goods.

• The main function of banks is to provide medical services.

• The main function of banks is to build roads.

What is the principle in finance?

• The principle is the amount of money saved or borrowed.

• The principle is the interest earned on an investment.

• The principle is the total profit from a business.

• The principle is the annual tax paid on income.

What is the main function of a Credit Union?

• To make a profit for stockholders

• To provide not-for-profit financial services to members

• To charge high interest rates

• To sell insurance