A Transfer Payment Is

question 94

Multiple Choice

A transfer payment is

• A) a bonus to get a worker to accept a transfer.
• B) a cash payment made by the government to people who do not supply goods, services or labor in exchange for the payment.
• C) a cash payment for transferring a good from one person to another.
• D) an in kind payment for working "off the books."

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Definitions:

Face Value

The nominal or dollar value stated on a financial instrument, such as a bond or stock certificate.

Bond Issue

The process of offering bonds for sale to investors as a way of borrowing money for long-term capital needs.

Interest Payable

The amount of interest expense that has been incurred but not yet paid by the company.

Callable Bonds

Bonds that can be redeemed by the issuer before their maturity date at a specified price.