The money available to a household over and above that required for a comfortable standard of living is termed:
A) diversion income.
B) discretionary income.
C) discretional income.
D) fun money.

Question

Quizplus · Accepted Answer

Discretionary income is the money that a household has left after necessary expenses, such as rent, utilities, and groceries, are paid. This money can be used for non-necessities such as entertainment, vacations, or savings. Diversion income and discretional income are not recognized terms in finance, and "fun money" is too colloquial and does not convey the full meaning of discretionary income.

The Money Available to a Household Over and Above That