Question

Johnny has invested in 10 shares of a big name electronics company. Each share is worth $150.28, and the company pays Johnny $2.13 for each share that he owns. With his 10 shares he earns $21.30 per year. What is this type of earning called?

A) capital gains

B) dividend income

C) interest income

D) adjusted gross income

Answer 1

The answer is B) Dividend Income, because I had the on USA test prep and got it wrong and it showed me the right answer which is dividend income