Which of the following is a transfer payment?
A)Work-study students receive wages transferred from the university budget.
B)A company pays the moving expenses for a transferred employee.
C)A student transfers to another college and receives a tuition rebate.
D)A student receives a tuition grant from the federal government.

Question

Quizplus · Accepted Answer

A transfer payment is a payment made by the government to individuals without expecting any direct service or good in exchange. In this case, the tuition grant received by the student from the federal government is a transfer payment as it is a form of financial assistance given to the student without expecting any direct service or good in exchange. The other options involve payments made in exchange for services or goods, and therefore, they are not transfer payments.

Which of the Following Is a Transfer Payment