Which of the following is an example of a passive income? a. receiving money from selling stocks b. receiving royalties from writing a book c. making money from selling a motorcycle d. making money by getting paid a salary Please select the best answer from the choices provided
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Receiving royalties from writing a book is a classic example of passive income because, after the initial effort of writing and publishing, the income continues to flow without needing continuous active work. It’s like planting a tree that keeps bearing fruit year after year! On the other hand, selling stocks can also lead to passive income but typically involves dividends, while receiving money from selling a motorcycle and earning a salary are considered active income. Passive income is all about making your money work for you while you kick back with a good book—maybe even the one you wrote!