Unilateral transfers are

Question

Quizplus · Accepted Answer

Unilateral transfers refer to the gifts, donations or grants made by an individual or organization of one country to another country's resident without expecting anything in return. These transactions are not considered a part of trade because there is no purchase of goods or services involved. Hence, option C is the correct answer. Option A is incorrect because it talks about transactions between citizens of the same country, which do not involve any international transfer. Option B is incorrect because it refers to government payments using official reserves, which is not the same as unilateral transfers. Option D is incorrect because it refers to the payment of interest, which is a part of international debt transactions and not unilateral transfers.

Unilateral Transfers Are