Question 1

What is passive income?

Accepted Answer

Income gained from a source you do not actively participate in as it pays out.

Answer

Income gained from doing absolutely nothing at all.

Answer

Income gained from working, such as from a job.

Question 2

Which of the following sources can generate passive income?

Accepted Answer

All of these.

Answer

An IRA.

Answer

Rental properties.

Answer

Investments.

Question 3

Timothy wants to invest in real estate to generate passive income in the future. How active do you think he needs to be in order to secure that income?

Accepted Answer

Very active. Timothy will need to save money to buy a property and maintain it. If he wants to sell, he needs to read the market to profit. If he wants to rent, he'll have ongoing responsibilities.

Answer

Not active at all. Timothy needs to only consider properties and he can make money without any effort whatsoever.

Answer

Fairly active. Timothy needs to save money to buy a property, but after that the money will just take care of itself.

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