Which of the following is an example of transfer payments?
A)military salaries
B)unemployment benefits
C)government loans
D)interest earned on savings in banks

Question

Quizplus · Accepted Answer

Transfer payments are payments made by the government to individuals or groups without the expectation of receiving goods or services in return. These payments usually aim to provide temporary financial assistance or alleviate poverty. Unemployment benefits are an example of transfer payments. Military salaries (A) are payments made in exchange for services rendered, and government loans (C) are loans that must be repaid with interest. Interest earned on savings in banks (D) is a payment made by the bank to the individual for allowing the bank to use their money, and is not considered a transfer payment.

Which of the Following Is an Example of Transfer Payments