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His newspaper pays him a huge amount into passive​.

a) Income
b) Expenses
c) Debts
d) Investments

1 Answer

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Final answer:

A newspaper paying an individual a substantial sum is considered income, which can be taxed and falls under 'income payments' in the current account balance, distinguishing it from expenses, debts, and investments.

Step-by-step explanation:

When a newspaper pays a person a large sum of money, it is considered to be income. This income can be seen as a component of the current account balance, where it is categorized under 'income payments.' It represents money flowing into an entity, such as when U.S. financial investors receive funds on their foreign investments. In this context, if a newspaper pays someone a significant sum, it has the characteristic of income from an economic and business perspective.

It's important to recognize the distinction between the different financial terms provided in the question. While expenses refer to the money spent by a business, debts represent borrowed money that the business owes, and investments are assets acquired with the expectation that they will generate income or appreciate in the future. Therefore, the correct answer to the question is 'income,' as it reflects the flow of money received, which can be taxed or used in various ways by the individual receiving it.

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