Examples of Transfer Payments Are

question 26

Multiple Choice

Examples of transfer payments are

• A) wages, profits, and rents.
• B) Social Security checks and unemployment insurance payments.
• C) salaries of educators, police, and firefighters.
• D) federal government spending for national defense.

---

Definitions:

Cash Flows

The sum of funds flowing in and out of a company, particularly influencing its ability to cover short-term obligations.

Annuities

Financial products that pay out a fixed stream of payments to an individual, typically used as a retirement strategy.

Periodic Interest Rate

The interest rate charged or earned over a particular period of time, less than a year, on a loan or investment.

Nominal Annual Rate

Nominal Annual Rate is the annual rate of interest without taking into account the compounding of interest within a year or the effects of inflation.