Question

Monthly salary comes under which family income?

• A. Monetary income
• B. Real income
• C. Psychic income
• D. None of these

Hint:

Remember the flow: You earn Monetary income (money), use it to get Real income (goods/services), and derive Psychic income (satisfaction) from it.

Answer 1

The Correct Option is A

Step 1: Understanding the Concept:
Family income can be classified into different types based on its form. The main types are monetary, real, and psychic income.

Step 2: Detailed Explanation:
- Monetary income: This is the income received in the form of money, such as cash, salary, wages, interest, and rent. A monthly salary is a direct cash inflow.
- Real income: This refers to the goods and services that a family can obtain with their monetary income. It also includes goods and services received without spending money (e.g., vegetables from a home garden).
- Psychic income: This is the intangible satisfaction or enjoyment a family gets from their monetary and real income, such as feelings of security, comfort, and happiness.
A monthly salary is the actual money earned, so it is classified as monetary income.

Step 3: Final Answer:
A monthly salary is a form of monetary income.