18
QuizMultiple Choice

Sources of Income

Question 18 • SHS Alt Personal Finance - 2021

Which of the following is an example of a passive income?

Answer
A
receiving money from selling stocks
B
receiving royalties from writing a book
C
making money from selling a motorcycle
D
making money by getting paid a salary

Explanation

Passive income is money earned from an asset or work that can continue generating income without ongoing active labor. Royalties from a book can be paid each time it is sold or used, so receiving book royalties is the best example. A salary requires working for an employer, while selling stocks or a motorcycle is generally a one-time sale rather than recurring passive income.

AI-written and checked against the verified answer.

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