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Question
Which of these is an example of a transfer payment?
Which of these is an example of a transfer payment?
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Solution
The correct option is B Retirement pension
A payment made or income received in which no goods or services are being paid for is called transfer payment. It is a sort of one way payment. Profit, rent, transportation and freight charges are all two way payments and are made in return for something whereas retirement pension is a one way payment. Hence, retirement pension is an example of a transfer payment.
A payment made or income received in which no goods or services are being paid for is called transfer payment. It is a sort of one way payment. Profit, rent, transportation and freight charges are all two way payments and are made in return for something whereas retirement pension is a one way payment. Hence, retirement pension is an example of a transfer payment.
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