Explanation
Transfer payments are unilateral transactions where money or goods are sent from one country to another without any exchange of goods or services in return. These are recorded in the current account of the balance of payments.
Option 1 is correct: Remittances are generally considered a form of transfer payment, specifically personal transfers, where money is sent from one person to another, often from a migrant worker to their family back home.
Option 2 is correct: Gifts and donations are indeed considered transfer payments because they involve a one-way transfer of funds or resources without any goods or services exchanged in return.
Option 3 is correct: Contributions to international organizations are generally considered a type of transfer payment, which involves a one-way flow of funds without any direct exchange of goods or services
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