Scenario 4-1 In a Given Year, Country a Exported $12 Million Worth

Multiple Choice

Scenario 4-1
In a given year, country A exported $12 million worth of goods to country B and $6 million worth of goods to country C; country B exported $4 million worth of goods to country A and $7 million worth of goods to country C; and country C exported $5 million worth of goods to country A and $2 million worth of goods to country B.
-Which of the following statements about transfer payments is true?

A) Transfer payments are not included in total government expenditures.
B) Transfer payments involve the international remittance of funds.
C) Transfer payments refer to the transfer of money by the commercial banks to the people.
D) Transfer payments are made by the government to taxpayers.
E) Transfer payments are made when governments purchase goods and services.