4
QuizMultiple Choice

Sources of Income

Question 4 • SHS Alt Personal Finance - 2021

Trevor restores antique cars and sells them for profit. This is an example of _____ income.

Answer
A
capital gains
B
earned
C
hourly
D
passive

Explanation

Capital gains are profits made when an asset is sold for more than it cost. Trevor earns a profit by restoring and selling antique cars, so this is capital gains income. It is not hourly income because he is not being paid by the hour.

AI-written and checked against the verified answer.

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