Finra Exam Series-6 Topic 1 Question 103 Discussion

Actual exam question for Finra's Series-6 exam

Question #: 103
Topic #: 1

A person's discretionary income is:

Athe amount that can be allocated to speculative investments.

Bhis income after tax.

Cthe income that he has left to spend or save after having paid taxes on the income and for all of the necessities, e.g., housing, food, clothing, transportation, utilities, etc.

Dthe amount of his income that is needed to pay his regular monthly bills, e.g., rent, food, gasoline, utilities, health insurance, etc.

Show Suggested Answer

Suggested Answer: C

A person's discretionary income is the income that he has left to spend or save after having paid taxes on the income and for all of the necessities, e.g., housing food, clothing, transportation, utilities, etc. His income after tax is referred to as his disposable income.

by Hector at Jul 08, 2025, 01:19 AM

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Tijuana

2 days ago

Hmm, I'm going with C. Discretionary income is like that secret stash of cash you can use to bribe the exam proctor, right? Just kidding, but seriously, C is the way to go.

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Lillian

6 days ago

D is a close one, but C really nails it. Discretionary income is what you can use for fun stuff, like buying tickets to the next Weird Al concert. That's living the dream, my friends.

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Reta

13 days ago

I like C, it covers all the bases. Discretionary income is that sweet spot between what you need to live and what you can play with. Gotta love that extra cash!

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