Which of the following is a form of earned income?

Prepare for the FBLA Securities and Investments Exam with questions, flashcards, and hints to enhance your knowledge and boost your confidence. Excel on your exam!

Earned income refers specifically to the money you earn from working, which includes wages, salaries, bonuses, and tips in exchange for your labor. Salary or wages from employment directly fall under this category since they are payments made for your time and effort in performing job duties. This type of income is typically subject to income tax and is a primary source of financial support for individuals.

In contrast, investment dividends, rental income, and capital gains all represent income generated from investments or property rather than direct labor or services performed. Investment dividends come from owning shares in a company and receiving a portion of the company's profits, while rental income is derived from leasing out property. Capital gains occur when an asset is sold at a higher price than it was purchased. These forms of income are considered passive or investment income rather than earned income, as they do not require active participation or labor by the individual to receive them.

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