Question 41
Public FinanceWhich of the following is a transfer payment?
- A.Dividend to a shareholder
- B.Gift to a Motherless Babies' Home
- C.Salary to a worker
- D.Rent to a landlord
Show the answer and explanation
Answer: B (Gift to a Motherless Babies' Home)
Explanation
A transfer payment is money received without giving any good or service in return, like a gift to a charity home.