Which of the following is a component of a budget?

A budget is a financial plan that outlines expected income and expenditures over a specific period. Income is a fundamental component of a budget because it represents the money coming in, which is essential for determining how much you can afford to spend and save. Without accurately accounting for income, a budget would be ineffective as it wouldn't give a clear picture of financial health or enable effective planning.

While interest rates, market trends, and investment options may influence financial decisions and long-term planning, they do not constitute the core elements of a budget. Interest rates affect borrowing costs and savings, market trends inform investment strategies, and investment options refer to the alternatives available for placing money. However, these factors are not integral to the basic framework of budgeting, which primarily revolves around assessing income and planned expenses.