Transfer payments are government payments without exchange of goods or services

Steps:

• Define transfer payment: Money transferred by government to individuals or groups without receiving goods, services, or productive activity in return.
• Evaluate options: Check if each involves no exchange for current production or services.
• Identify matches: Look for government aid like grants that fit the definition.
• Confirm: Rule out payments tied to loans, transport, or asset movements.

Why D is correct:

• Grants to students are one-way government payments to support education, matching the economic definition of transfer payments as non-exchange transfers.

Why the others are wrong:

• A: Involves moving personal funds between accounts, not a government transfer.
• B: Represents loan repayment for a purchased good, a market transaction.
• C: Covers costs for transporting goods, a service exchange in production.

Final answer: D