Question

Byron is a wealthy tycoon who makes his money buying and selling stocks. This is an example of _____ income.

a. capital gains
b. earned
c. hourly
d. passive

Answer 1

a. we know it is not c or d cuz they would not fit but a and b are our options the answer would be B IF he was a worker but in this case he makes his money from a profit and pays the workers (they earned it) so it is A

Answer 2

Answer: (C) Capital Gain Income

Explanation: Byron is making money through buying and selling of stocks. When a stock is bought and sold within 3 years, it is considered as short term capital gain. When a stock is bought today and sold after 3 years, it results into long term capital gain. Hence, the answer is Capital Gain income.

The other options are earned , hourly and passive are not relevant.