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Economics (AS & A Level) · May / June 2025 · Paper 11 · Question 15

9708Addressing income and wealth inequality

What is an example of a transfer payment?

  1. Aa household moving savings from one bank account to another
  2. Ba monthly repayment on a loan used to buy a new cooker
  3. Cthe amount paid to transport goods from one city to another
  4. Dgrants paid to students by the government

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Correct answer: D. grants paid to students by the government

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