Answer the following multiple-choice questions about interest income by clicking on the correct answers.

1. Interest income is earned on all of the following except

• A. U.S. Savings Bonds.
• B. rental properties.
• C. deposits in savings accounts.
• D. deposits in credit union accounts.

2. Which statement is not true?

• A. Interest is the charge for the use of money.
• B. Interest income is considered unearned income.
• C. Interest income may be taxable or tax-exempt.
• D. The U.S government does not pay interest.

Determine whether the interest income is taxable or tax-exempt. Answer the following questions by selecting taxable or tax-exempt in the space provided.

1. Alexa earned $145 from money in her savings account.

• A. Taxable
• B. Tax-exempt

2. LaKeisha earned $135 on bonds issued by the Ohio Water Authority.

• A. Taxable
• B. Tax-exempt