What term describes money earned from work or investments?

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Prepare for the EverFi Financial Literacy for High School Test. Utilize flashcards and multiple-choice questions with detailed explanations and hints. Enhance your financial literacy skills and get exam-ready!

The term "income" is used to broadly describe money earned from various sources, including work, investments, and other forms of revenue generation. Income encompasses a wide array of earnings, such as wages, salaries, dividends from investments, rental income, and more. This makes it a comprehensive term that applies to individuals and businesses alike regarding the money they receive during a certain period.

While "salary" refers specifically to a fixed regular payment typically given to employees for their work, it does not account for earnings from other sources. "Revenue" generally describes the total money generated by a business from its normal operations, which is different from an individual’s earnings. "Profit" defines the financial gain after subtracting expenses from revenue, relating more specifically to business contexts than personal income. Thus, income is the most fitting term to describe money earned from both work and investments.

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