An example of a transfer payment is
A) an interest payment on a General Motors' bond.
B) the added value of stock from the time it was bought to the time it was sold.
C) a Social Security retirement benefit.
D) the salary paid to a member of the armed forces.

Question

Quizplus · Accepted Answer

A transfer payment is a payment made to an individual or household for which no good or service is exchanged. Social Security retirement benefits are an example of transfer payments because they are payments made to individuals and households to support their living expenses in retirement. The other choices involve goods or services being exchanged, making them not transfer payments.

An Example of a Transfer Payment Is