An example of transfer payments in national income accounting is
- money transferred to another country
- transfer of funds from one bank to another
-
unemployment allowance paid to the citizens
- the amount paid to a worker on transfer
The correct answer is: C
Explanation
Transfer payment are payment of receipts not resulting from contribution to productive activities in the economy. They are mere transfers from one person to another, for example: pension, bursary, award, gift, unemployment benefit etc. When estimating or calculating national income, transfer payment are excluded.