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 from the government to individuals or households where no goods or services are exchanged. Social Security, unemployment benefits, and welfare are all examples of transfer payments. However, interest payments on government bonds are payments made by the government to bondholders in exchange for borrowing money, and therefore do not fall under the category of transfer payments.

Which of the Following Is NOT an Example of a Transfer