Transfer payments are expenditures such as social security benefits, farm subsidies, and grants.
Transfer payments are known as the largest outlay for the federal government.
When money is paid out but no goods or services are exchanged, this is referred to as a transfer payment. Government initiatives to redistribute funds to those in need are frequently referred to as transfer payments by local, state, and federal governments. The primary objective of these expenditures is to equally allocate government benefits in order to improve the living conditions of the poor.
Transfer payment is actually used to describe government payments to individuals through social programs such as farm subsidies, grants, welfare, free health insurance, food stamps, medical assistance and student grants.
However, government payments to corporations shouldn't be considered transfer payments.
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