Which of the following is NOT an example of a transfer payment?
A) Social Security
B) Unemployment benefits
C) Welfare
D) Interest payments on government bonds

Question

Quizplus · Accepted Answer

Transfer payments are payments made to individuals, not businesses or governments, for which no goods or services are exchanged. Social Security, unemployment benefits, and welfare are all examples of transfer payments because they are made to individuals in need. However, interest payments on government bonds do not fit the definition of a transfer payment because they are payments made to bondholders in exchange for the use of their money, which is a form of borrowing.

Which of the Following Is NOT an Example of a Transfer