Which of the Following Is Not Counted as Income When

question 126

Multiple Choice

Which of the following is not counted as income when the official poverty rate is calculated?

• A) Medicaid benefits
• B) dividends derived from the ownership of stock
• C) earnings derived from a part-time job
• D) money income derived from transfer payments

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Definitions:

Investing

The act of committing money or capital to an endeavor with the expectation of obtaining an additional income or profit.

Compounded Annually

The process where interest earned in one period is added to the principal sum and then interest in the next period is calculated on the new total.

Ordinary Annuity

A series of equal payments made at regular intervals, such as monthly or annually, with the payments occurring at the end of each period.

Investment Account

A financial account held by an investment dealer that enables individuals to purchase securities such as stocks, bonds, and mutual funds.