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An example of transfer payments in national income accounting is

An example of transfer payments in national income accounting is
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Money transferred to another country
  • B Unemployment allowance paid to the citizens
  • C The amount paid to a worker on transfer
  • D Transfer of funds from one bank to another
Correct Answer: Option B
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.

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