What are Transfer Payments and its examples?
Transfer payments is simply defined as income received but not earned.
For instance, you can be in your home and an elderly family friend comes to pay your parents a visit. While leaving, this family friend decides to give you some amount of money just for the sake of giving (you hadn’t worked for him/her) – that’s transfer payment.
Further examples include;
- Scholarships
- Foreign aids
- Grants, etc
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