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    Question

    What distinguishes transfer payments from other types of

    payments?
    A Transfer payments involve an exchange of goods or services. Correct Answer Incorrect Answer
    B Transfer payments are made only from individuals to organizations. Correct Answer Incorrect Answer
    C Transfer payments are one-way payments without an immediate exchange. Correct Answer Incorrect Answer
    D Transfer payments are limited to retirement and disability payments. Correct Answer Incorrect Answer
    E Transfer payments are made exclusively by government entities. Correct Answer Incorrect Answer

    Solution

    The distinguishing characteristic of transfer payments is that they are one-way payments made without an immediate exchange of goods or services. Unlike payments for goods or services, transfer payments are typically meant to provide financial assistance or support without the expectation of receiving something in return.

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