Which statement describes fixed income?

Which statement describes fixed income?

• A. Amounts of money you receive regularly
• B. Amounts of money that are uncertain
• C. Lump-sum payments from windfalls
• D. Income from a new business

Answer: (A)

Fixed income means payments that are regular and predictable. The key idea is knowing exactly what you will receive and when, which supports steady budgeting and lowers uncertainty. This contrasts with money that’s uncertain, comes as a lump sum from windfalls, or depends on starting and running a business, all of which lack a consistent, planable cash flow. So the best description is amounts of money you receive regularly, such as interest payments from bonds or fixed annuities.

Fixed income means payments that are regular and predictable. The key idea is knowing exactly what you will receive and when, which supports steady budgeting and lowers uncertainty. This contrasts with money that’s uncertain, comes as a lump sum from windfalls, or depends on starting and running a business, all of which lack a consistent, planable cash flow. So the best description is amounts of money you receive regularly, such as interest payments from bonds or fixed annuities.