Which of the following is / are the example(s) of Transfer Payment(s)? 1. Unemployment Allowance 2. Payment of Salary 3. Social Security Payments 4. Old age Pension Select the correct answer using the code given below :

CDS 2016 PYQ with Answer — Which of the following is / are the example(s) of Transfer Payment(s)…

2016 · Q78

Which of the following is / are the example(s) of Transfer Payment(s)?

1Unemployment Allowance
2Payment of Salary
3Social Security Payments
4Old age Pension

Select the correct answer using the code given below :

General KnowledgeIndian Economy

A1 and 3 only
B1, 2 and 3 only
C1, 3 and 4 only
DNone of the above

Explanation

Transfer payments are payments made without any corresponding good or service in return: unemployment allowance (1), social security payments (3) and old-age pensions (4) all qualify, being redistribution rather than factor income. Payment of salary (2) is compensation for labour services rendered and is therefore not a transfer payment. Items 1, 3 and 4 are transfer payments, option (C).