Transfer Payments

question 123

Multiple Choice

Transfer payments

• A)are excluded from GDP but included in government purchases.
• B)are excluded from government purchases and GDP.
• C)are included in government purchases and in GDP.
• D)are excluded from government purchases but included in GDP.
• E)are included in government purchases but excluded from GDP.

---

Definitions:

Financing Activities

Transactions involving raising capital and repaying investors, including issuing debt, obtaining loans, and returning capital to shareholders.

Net Cash

The amount of cash available after accounting for all cash inflows and outflows within a specific period.

Investing Activities

Financial actions related to the acquisition or sale of assets, such as securities and property, aimed at generating income or appreciation.

Net Cash

The distinction between a business's overall cash receipts and disbursements.