10
QuizMultiple Choice

Budgeting

Question 10 • AA - F26 Personal Finance and Economics

Which is an example of an income deduction?

Answer
a
an unexpected salary cut
w
wages lost due to illness
v
vacation budget
r
retirement savings

Explanation

An income deduction is money taken from income for a specific purpose, such as saving for retirement. Retirement savings are set aside from earnings, so D is correct. An unexpected salary cut and wages lost due to illness reduce income rather than being deductions, and a vacation budget is a plan for spending money.

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