Which of the Following Represents a Transfer Payment

question 46

Multiple Choice

Which of the following represents a transfer payment?

• A)You transfer $1,000 from your bank account to a mutual fund.
• B)The government sends your grandfather his Social Security check.
• C)You make a payment to get legal documents showing you purchased a previously owned home.
• D)Your employer automatically transfers $100 each month from your wages to a non-taxable medical spending account.

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Definitions:

Portfolio Return

The overall gain or loss generated by an investment portfolio over a particular period of time, taking into account both capital gains and income received.

Expected Return

The anticipated average return from an investment based on its probable profits.

Recession

A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.

Portfolio

A group of various financial instruments such as stocks, bonds, commodities, and cash or cash-like assets, including mutual funds and exchange-traded funds.