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Course Quiz

One page of multiple-choice questions on the six mechanisms of passive income. It marks itself in your browser: no account, no submission, nothing stored, and the page forgets everything when you reload it.

Answer what you can and press Check answers. Each question then shows whether you were right, which choice was correct, and why — with a link back to the lesson it came from. Unanswered questions count as wrong so the score means the same thing every time.

Nothing here is timed and nothing is recorded. If a question is unfamiliar, the lesson it came from is linked underneath it — opening that first and answering afterwards is a perfectly good way to use this page. Getting one wrong costs nothing; the explanation is the point.

What the score means
This is a comprehension check, not a suitability assessment. A high score means you can describe how a mechanism works. It says nothing about whether any income stream suits your situation, and nothing on this site is investment advice.

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  1. Question 1 of 20 Which of these is not passive income as this course defines it?

    From lesson: The six ways money reaches you

  2. Question 2 of 20 An advertising company pays a landowner a fixed monthly amount to keep a billboard on their field. Which mechanism is that?

    From lesson: The six ways money reaches you

  3. Question 3 of 20 What does FDIC deposit insurance actually protect against?

    From lesson: Interest: what you are paid for lending

  4. Question 4 of 20 Two bonds mature on the same day, and one yields noticeably more than the other. All else equal, the extra yield is most likely payment for what?

    From lesson: Interest: what you are paid for lending

  5. Question 5 of 20 You hold a fixed-rate bond and market interest rates rise. What happens?

    From lesson: Interest: what you are paid for lending

  6. Question 6 of 20 Why is a conventional payout ratio — dividends divided by earnings per share — uninformative for a REIT?

    From lesson: Distributions: being paid for owning

  7. Question 7 of 20 You buy shares on the ex-dividend date of a declared dividend. Who receives that dividend?

    From lesson: Distributions: being paid for owning

  8. Question 8 of 20 A fund reports that part of its distribution was a return of capital. What does that mean?

    From lesson: Distributions: being paid for owning

  9. Question 9 of 20 Why do REITs distribute such a large share of their taxable income?

    From lesson: Distributions: being paid for owning

  10. Question 10 of 20 A buyer finances 70% of a building with a mortgage instead of paying cash. What happens to the property's cap rate?

    From lesson: Rent: being paid for the use of an asset

  11. Question 11 of 20 Under a triple-net lease, who typically pays property taxes, building insurance and maintenance?

    From lesson: Rent: being paid for the use of an asset

  12. Question 12 of 20 Which of these is excluded from net operating income?

    From lesson: Rent: being paid for the use of an asset

  13. Question 13 of 20 Why can a royalty trust's trailing distribution yield be misleading?

    From lesson: Royalties: being paid per use

  14. Question 14 of 20 One licence offers 12% of 'net receipts' and another 8% of gross. Why can you not tell which pays more?

    From lesson: Royalties: being paid per use

  15. Question 15 of 20 What does a covered-call seller give up?

    From lesson: Option premium: being paid to give someone a choice

  16. Question 16 of 20 Why is annualising an option premium into a 'yield' misleading?

    From lesson: Option premium: being paid to give someone a choice

  17. Question 17 of 20 When is early assignment on a short equity call most likely?

    From lesson: Option premium: being paid to give someone a choice

  18. Question 18 of 20 A limited partner in a private operating business generally has:

    From lesson: Business profits: being paid by a company someone else runs

  19. Question 19 of 20 Which of these is truly passive rather than semi-passive?

    From lesson: Business profits: being paid by a company someone else runs

  20. Question 20 of 20 Which of these payments carries an obligation on somebody else to keep paying you in future periods?
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Frequently asked

How is the quiz scored?
In your browser. The answer key is loaded with the page and compared against your selections when you press Check answers. Nothing is submitted, nothing is stored, and reloading the page clears everything.
Do I need an account or an email address?
No. There is no sign-in, no progress saving and no score history. The quiz exists to show you which mechanisms you have understood, not to record anything about you.
What if I disagree with an answer?
Each question shows an explanation once you check your answers, and every concept links back to the lesson and the library page that covers it. If an explanation is wrong or unclear, tell us through the contact page — corrections are welcome.
Does a high score mean I am ready to invest?
No. The quiz tests whether you can describe how each mechanism works. It does not assess your situation, it is not a suitability check, and nothing on this site is investment advice.

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