An example of a transfer payment is

Question

Quizplus · Accepted Answer

A transfer payment is a payment made by a government to an individual or household for which no good or service is exchanged. Pensions paid from the Canada Pension Plan are a clear example of transfer payments. Private firms' payments of dividends, government payments of salaries to schoolteachers, government spending on military equipment, and government payments of salaries to Members of Parliament are not transfer payments, as they all involve an exchange of goods or services for payment.

An Example of a Transfer Payment Is