What are cash transfers?

• A. Loans provided to individuals with low income
• B. Direct payments made to eligible individuals in poverty
• C. Tax benefits for businesses
• D. Grants for education

Answer: (B)

Cash transfers refer to direct payments made to individuals who meet specific eligibility criteria, such as those living in poverty. This system is designed to provide financial assistance to help improve the living conditions of low-income individuals or families. The funds are typically distributed by government programs or social welfare organizations, aimed at alleviating poverty and ensuring that basic needs such as food, shelter, and healthcare can be met.

By providing cash directly, these programs empower recipients by giving them the flexibility to use the funds according to their most pressing needs, rather than being restricted to specific goods or services. This approach has been shown to effectively support financial stability and enhance overall well-being for those struggling economically.