Economics 9708 · AS & A Level · National income statistics

National income statistics — practice question

A teenager was given a $50 cheque by her parents for her birthday. She deposited the cheque into her savings account at the bank. Why does this gift count as a transfer payment?

  • AIt did not involve a cash payment.
  • BIt transfers money between bank accounts.
  • CThe parents did not spend their money.
  • DThe teenager did not produce any output.

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