AES Personal Financial Literacy Module Test fully solved graded A+ 2023/2024

AES Personal Financial Literacy Module TestWhat is earned income? - correct answer Any income generated by working. What are the three forms of income? - correct answer Wage, Salary, and Commission. Rick's pay is $58,000 per year. This is an example of a what? - correct answer Salary Abigail's pay is 25% of her sales for the month. This is an example of a what? - correct answer Commission Jacqueline's pay is 18 dollars per hour. This is an example of what? - correct answer Wage What are some factors that influence earned income? - correct answer How hard you work, your training, if you have a degree or certification. What is portfolio income? - correct answer Any income generated by selling an investment at a higher price that you payed for it. What are three ways to produce portfolio income? - correct answer Trading(selling) stock investments for profit. Selling Real Estate. Selling of assets that gain value over time. Is the following an example of portfolio income? Lillian purchased a house for $150,000. Lillian and her husband invested $50,000 into home improvements. Lillian and her husband were able to sell the house for $275,000. - correct answer Yes Is the following an example of portfolio income? Michael purchased stock in a grocery chain named Wiggler's. Wiggler's stock has decreased in value over the last year, and Michael has lost money. Michael decides to sell all of his Wiggler's stock to prevent further financial loss. - correct answer No What is passive income? - correct answer Money you have earned from assets you have purchased or created. Passive income is generally ___________ income. - correct answer Recurring Is the following an example of passive income? Sue Anne purchased a second, larger home in which to live. She has decided to rent her first home out for $1,500 a month. Her mortgage on the first home is $1,250. - correct answer Yes What is earning potential? - correct answer The top salary you can make. What is earning potential? - correct answer The top salary you can make. What is opportunity cost? - correct answer The money or other benefits lost when pursuing a particular course of action instead of a mutually- exclusive alternative. What is productivity? - correct answer The quality, state, or fact of being able to generate, create, enhance, or bring forth goods and services. What is human capital? - correct answer The collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value for the individuals, their employers, or their community. What does it mean to have a career? - correct answer To have an occupation or profession, especially one requiring special training, followed as ones life work. Who has the most control over your earning potential? - correct answer You