A business that invests in a federal "CD" (certificate of deposit, where they basically loan the government money in order to gain interest payments on it) would be earning:
Select one:
a. passive income.
b. active income.
c. balanced income.
d. stock income.

( May be this is helpful)

Explanation:

Active income:

Active income refers to income received for performing a service. Wages, tips, salaries, commissions, and income from businesses in which there is material participation are examples of active income.

Passive income;

Passive incomes include earnings from a rental property, limited partnership, or other business in which a person is not actively involved—a silent investor, for example. Portfolio income is considered passive income by some analysts, so dividends and interest would be considered passive.

Balanced income;

PIMCO Balanced Income Strategy aims to provide attractive current income as well as capital appreciation over the long term by combining the higher capital appreciation and dividend-paying potential of equities with the lower volatility and attractive income potential of fixed income.

Stock Income;

An income stock is an equity security that pays regular, often steadily increasing dividends. Income stocks usually offer a high yield that may generate the majority of the security's overall returns. ... Income stocks may have limited future growth options, thereby requiring a lower level of ongoing capital investment.

Income Stocks, also known as dividend stocks, are the equity stocks that provide consistent and regular income in the form of a dividend to its buyers.

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