Which of the following are examples of transfer payments?
Answer Details
Transfer payments refer to payments made without any corresponding goods or services in return. Therefore, the only option listed that fits the definition of a transfer payment is "gifts and donations."
Rents and rates refer to payments made in exchange for the use of land or property. Profits and dividends refer to payments made to the owners of a company or investment. Internal and external debts refer to money owed by a borrower to a lender, with interest charged for the use of that money.