3
QuizMultiple Choice

Sources of Income

Question 3 • SHS Alt Personal Finance - 2021

Which of the following is an example of earning income from capital gains?

Answer
A
hourly employee earning $17 per hour
B
salaried employee earning $56,000 per year
C
selling stocks and making a profit of $3,000
D
buying a car for a total of $5,000

Explanation

Capital gains are profits earned when you sell an asset for more than you paid for it. Selling stocks and making a $3,000 profit is an example of a capital gain. Hourly and salaried pay are wages, while buying a car is a purchase, not income.

AI-written and checked against the verified answer.

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