An example of a transfer payment is

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Old-age pensions are an example of a transfer payment because they involve the government transferring money to individuals without the individuals providing any goods or services in return. This is different from military expenditures, which involve the government paying for goods and services, and from military aid to a foreign country, which involves the government providing money to another government for a specific purpose. Dividends paid to stockholders are also not transfer payments because they come from a private firm rather than the government.

An Example of a Transfer Payment Is