Reshma receives Rs 3000 per month as pocket money. His father asked her, " Reshma, if you tell me, whether, the pocket money which i give you every month is a transfer payment or factor payment, i will increase your pocket money by Rs 500". What do you think was her reply?

It is a transfer payment

Pocket money given by Reshma's father will be a transfer payment as, nothing is coming in return in the form of goods and service. It is a unilateral payment.