WBCS.LIVE practice question

Which of the following statements about transfer payments are correct? 1. Transfer payments are made by the government to households. 2. Pension, scholarship etc. are not a part of the transfer payments. 3. Transfer payments are often used as a means of redistributing income within a society.

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. 1, 2 and 3
  2. 2 and 3 only
  3. 1 and 2 only
  4. 1 and 3 only

Correct answer and explanation

Correct answer: 1 and 3 only